Indian Rupee: Upside Momentum Likely

24 Jun 2022 , 09:00 AM

The Indian rupee is expected to see some upside momentum amid weakness in dollar coupled with lower crude oil prices in the international market. However, recession fears and waning investor confidence could dampen rupee sentiments. On Thursday, rupee closed at its all-time low of 78.32. At the interbank foreign exchange market, the local currency opened at 78.26 and fell to a low of 78.38 and finally settled at its all-time low 78.32, unchanged from its previous close. On Wednesday, the rupee declined by 19 paise to settle at an all-time low level of 78.32 against the US dollar. Domestic key equity barometers ended with strong gains on Thursday. The barometer index, the S&P BSE Sensex, rose 443.19 points or 0.86% to 52,265.72. The Nifty 50 index gained 143.35 points or 0.93% to 15,556.65. Foreign portfolio investors (FPIs) sold shares worth Rs 2,319.06 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,438.31 crore in the Indian equity market on 23 June, provisional data showed. Overseas, Asian stocks are trading higher on Friday as investors weigh recession fears. Wall Streets main indexes posted solid gains on Thursday, fuelled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession. Federal Reserve Chair Jerome Powell on Thursday reiterated that the central bank is ?strongly committed? to bringing down inflation, as he spoke on monetary policy for a second day before Congress. He also noted that a recession is a ?possibility,? a fear that has continued to weigh on Wall Street. On Thursday, the Labor Department said U.S. weekly jobless claims fell 2,000 to a seasonally adjusted 229,000 for the week ended June 18, showing the labor market remains tight. Powered by Commodity Insights