Indian Rupee: Supported By Foreign Fund Inflows

10 Aug 2022 , 09:20 AM

Declining oil prices and sustained foreign fund into Indian markets are keeping the Indian currency supported. Besides, dollar index that is marginally lower ahead of crucial data is also beneficial for rupee. The U.S. Labor Department will release its July report for consumer prices on Wednesday. A strong inflation print is likely to reinforce the idea that the Fed is not close to pausing its tightening cycle and markets would readjust their expectations for U.S. interest rates. On Monday, rupee fell 40 paise to close at 79.64 against the US dollar. At the interbank foreign exchange market, the domestic currency opened weak at 79.50 per dollar. It oscillated between a high of 79.45 and a low of 79.65 during the session. It finally settled at 79.64, down 40 paise over its previous close of 79.24. Forex market remained closed on Tuesday, 9 August 2022 on account of Muharram. Domestic stock market remained closed on Tuesday, 9 August 2022 on account of Muharram. The benchmark indices closed near the days high with major gains on Monday, tracking positive global cues. The barometer index, the S&P BSE Sensex, rose 465.14 points or 0.80% to 58,853.07. The Nifty 50 index gained 127.60 points or 0.73% to 17,525.10. Foreign portfolio investors (FPIs) bought shares worth Rs 1,449.70 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 140.73 crore in the Indian equity market on 8 August, provisional data showed. Overseas, Asian stocks are trading lower on Wednesday as investors digest inflation data from China and look ahead to the U.S. CPI report. Chinas consumer inflation edged up last month to the highest level in two years, data released on Wednesday showed, but producer prices continued to ease. Chinas consumer price (CPI) index rose by 2.7% in July from a year earlier, up from a rise of 2.5% in June. Producer price index (PPI), which reflects the prices that factories charge wholesalers for products, rose by 4.2% in July, down from a rise of 6.1% in June US stocks closed lower on Tuesday after a dismal forecast from Micron Technology pulled chip makers and tech stocks lower as investors await U.S. inflation data that could lead the Federal Reserve to further tighten its efforts to curb inflation. Powered by Commodity Insights