Rupee gains 16 paise against US Dollar tracking domestic markets

11 Jan 2022 , 02:26 PM

The Indian rupee appreciated its morning gains against the dollar, as the dollar index weakened because some banks continuously sold the US currency. This was more likely on the account of overseas inflow into the Indian markets.

The local unit opened up at 74.02 per US dollar as against the previous closing rate of 74.03 and was trading at 73.87, up 16 paise.

On Monday, the currency surged to its strongest level in two months on the back of domestic benchmark G-sec yields tracking US treasury yields higher. 

The dollar index stood at 95.86 currently as against 95.99 on Monday.

On the economy front, the US economy witnessed additions of 1,99,000 jobs in December as against an estimate of 4,00,000 jobs. The dismaying figures weakened the case for US Fed to approach a better and faster approach for normalizing monetary policy.

In its recent December Policy statement, the Fed has hinted towards three rates hiking of 25 basis points each in 2022.

Besides, foreign portfolio investors (FPIs) sold shares worth Rs124.23cr, while domestic institutional investors (DIIs), were net buyers to the tune of Rs481.55cr in the Indian equity market on 10 January, provisional data showed.