Indian Rupee: Strong Dollar To Weigh

29 Aug 2022 , 09:19 AM

Sharp gains in the US dollar are expected to drag down the Indian rupee in opening trades on Monday. Dollar rose following hawkish comments from Fed at the much awaited Jackson Hold conference. Fed Chairman Jerome Powell said, ?Restoring price stability will take some time, require using central banks tools forcefully,?. The policymaker also stated that restoring price stability will likely require maintaining a restrictive policy stance for some time. The dollar index that tracks the greenback against a basket of currencies is quoting at above 109. On Friday, rupee appreciated by 6 paise to close at 79.86 against the US dollar on Friday, supported by foreign fund inflows and a positive trend in domestic equities. At the interbank forex market, the local unit opened at 79.87 against the greenback. It witnessed an intra-day high of 79.81 and a low of 79.94 against the American currency during the session. It finally ended at 79.86 against the US dollar, up 6 paise from its previous close of 79.92. Domestic key equity barometers ended with small gains on Friday. The barometer index, the S&P BSE Sensex, rose 59.15 points or 0.10% to 58,833.87. The Nifty 50 index gained 36.45 points or 0.21% to 17,558.90. Foreign portfolio investors (FPIs) sold shares worth Rs 51.12 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 453.59 crore in the Indian equity market on 26 August, provisional data showed. Overseas, Asian stocks are trading lower on Monday as the mounting risk of more aggressive rate hikes in the United States. US stocks dropped sharply on Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank wont back off in its fight against rapid inflation. Powered by Commodity Insights