The Indian rupee is likely to see appreciation bias on Friday, 06 May 2022 on the back of weakness in the US currency in early Asia although elevated crude oil prices and sustained foreign fund outflows from the domestic market will continue to restrict gains in the local unit. Rupee gained against the US dollar after a surprise rate hike by the Reserve Bank of India (RBI) and as US Fed Chairman Jerome Powell pushed back against a steeper 75 basis points rate hike in the coming months. On Thursday, rupee appreciated by 5 paise to close at 76.35 against the US dollar, rising for the fourth straight session. At the interbank forex market, the domestic unit opened at 76.17 against the US dollar. It moved in a range of 75.99 to 76.30 during the session. The rupee finally closed at 76.35, registering a rise of 5 paise over its previous close of 76.40. Domestic equity benchmarks ended with tiny gains on Thursday, tracking mixed global cues. The barometer index, S&P BSE Sensex rose 33.20 points or 0.06% to 55,702.23. The Nifty 50 index added 5.05 points or 0.03% to 16,682.65. Foreign portfolio investors (FPIs) sold shares worth Rs 2,074.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,229.31 crore in the Indian equity market on 5 May, provisional data showed. Overseas, Asian stocks are trading lower on Friday after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020. Technology stocks in the region sold off, following the tech-heavy Nasdaq Composites nearly 5% drop overnight stateside. US stocks dropped sharply on Thursday amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserves interest rate hike the previous day would not be enough to tame surging inflation. The focus now shifts to the U.S. Labor Departments closely watched monthly employment report on Friday for clues on labor market strength and its impact on monetary policy. Meanwhile, the dollar index which tracks the currency against six rivals is oscillating near 103.60 levels on Friday ahead of closely watched U.S. jobs report thats likely to back the case for aggressive monetary policy tightening. DXY touched 103.94 in the previous session for the first time in two decades. Powered by Commodity Insights
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