Indian Rupee: Weakness In Dollar Keeps Sentiments Supported For INR

13 Jan 2022 , 08:51 AM

The Indian Rupee stayed supported, holding onto the recent gains amid sliding US dollar and firm local equities. INR closed at 73.92 per US dollar, up 3 paise on the day. The State Bank Of India (SBI), in its latest research update of Ecowrap has noted that the Q3 of current fiscal has witnessed a visible expansion in credit growth across sectors. The incremental CD ratio beginning Q3 FY22 is currently at 133 as against the incremental CD ratio of only 2 during H1 FY22. Incremental deposits in the banking system have declined by Rs 2.2 lakh crores in this time period, whereas credit growth has picked up by Rs 3.5 lakh crores. The recent credit growth is visible across sectors. Sectors where demand for credit started picking up during last three months include NBFCs, Telecom, Petroleum, Chemical, Electronics, Gems & Jewellery and Infrastructure including Power and Roads.

Benchmark indices ended with decent gains on Wednesday, extending their winning run to fourth consecutive session. The Nifty closed above the crucial 18,200 mark. Barring pharmaceutical and healthcare stocks, buying demand was seen across the board. The US Dollar Index that tracks the greenback against a basket of other currencies fell under 95 mark, testing its lowest level since November end, following Jerome Powells testimony.

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