Indian Rupee: Set To Breach Crucial Rs80/$ Level

15 Jul 2022 , 09:24 AM

The Indian rupee is seen all set to breach of Rs 80 per dollar on Friday, 15 July 2022 amid a strong greenback overseas. While wholesale inflation remained double-digit for 15 straight months to June, deterioration in the countrys current account deficit and forex outflows dragged the local unit near to the psychological low level of 80 against the greenback. A sharp correction in crude oil prices in the past few days, however, has been a breather for the local currency. Indias merchandise trade deficit rose to a record $26.1 billion in June 2022. Data released on July 14 showed that while exports in June rose by 23.5% to $40.13 billion, imports shot up by 57.5% to $66.31 billion. On Thursday, the local unit lost momentum after the dollar surged to 24-year high levels against a basket of global currencies in the early European trade. The rupee finally settled at the days lowest level of 79.9975 to a dollar, down by 18 paise over the previous close of 79.81. The frontline indices ended with minor cuts on Thursday amid negative global cues. The barometer index, the S&P BSE Sensex, was down 98 points or 0.18% to 53,416.15. The Nifty 50 index fell 28 points or 0.18% to 15,938.65. Foreign portfolio investors (FPIs) bought shares worth Rs 309.06 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 556.40 crore in the Indian equity market on 14 July, provisional data showed. Overseas, Asian stocks hit a two-year low on Friday as a fresh slew of rate hikes around the world deepened worry about the outlook for global economic growth. Wall Street indexes fell after weaker-than-expected earnings from JPMorgan Chase & Co and Morgan Stanley fanned fears of a sharp economic downturn. Fed Governor Christopher Waller and St. Louis Fed President James Bullard on Thursday said they favored another 75-basis-point interest rate increase at the U.S. central banks policy meeting this month. Powered by Commodity Insights