Indian Rupee: Stays Supported On Dollar Weakness

30 Nov 2022 , 09:13 AM

Persistent weakness in the dollar overseas ahead of Fed Powells speech later in the global day that would be closely evaluated is seen supporting the Indian rupee in opening trades on Wednesday. The dollar index has fallen to 106.64 from a 20-year high of 114.78 on Sept. 28 as investors look toward the U.S. central bank reaching a peak rate early next year with inflation pressures expected to subside. On Tuesday, rupee gave up initial gains to settle lower by 3 paise at 81.71 against the US dollar. At the interbank foreign exchange market, the local unit opened strong at 81.58 but later slipped into the negative territory. During the session, it touched an intra-day high of 81.57 and a low of 81.74 against the greenback. Overseas, Asian stocks are trading mixed on Wednesday. Chinese health officials on Tuesday announced measures to boost vaccination among the elderly, as per reports. U.S. stocks edged lower Tuesday with investors continuing to monitor Chinas COVID policy and look ahead for Federal Reserve Chair Jerome Powells scheduled speech. Federal Reserve Chair Jerome Powell will speak at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday. Domestic equity benchmarks ended with decent gains on Tuesday, rising for the sixth trading session. The barometer index, the S&P BSE Sensex, added 177.04 points or 0.28% to 62,681.84. The Nifty 50 index gained 55.30 points or 0.30% to 18,618.05. Foreign portfolio investors (FPIs) bought shares worth Rs 1,241.57 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 744.42 crore in the Indian equity market on 29 November, provisional data showed.. Powered by Commodity Insights