Indian Rupee: Likely To Stay Under Pressure

12 Dec 2022 , 09:31 AM

Strength in the dollar overseas coupled with weakness in equities is expected to add pressure on the Indian rupee in opening trades on Monday. The dollar index that measures the greenback against a basket of currencies is higher by 0.32% at 105.14. Overseas, Asian stocks are trading lower on Monday as investors looked ahead to a Fed meeting and U.S. inflation data this week. US stocks fell Friday after wholesale inflation rose more than expected last month, raising concerns that the Federal Reserve will keep rates higher for longer.The Federal Reserve is set to begin its two-day meeting on Tuesday. On Friday, INR appreciated by 10 paise to close at 82.28 (provisional) against the US dollar. At the interbank foreign exchange market, the local unit opened at 82.30 and touched an intra-day high of 82.08 and a low of 82.33 against the greenback. Domestic key equity indices settled lower on Friday, dragged by weakness in IT stocks. The barometer index, the S&P BSE Sensex, declined 389.01 points or 0.62% to 62,181.67. The Nifty 50 index lost 112.75 points or 0.61% to 18,496.60. Foreign portfolio investors (FPIs) sold shares worth Rs 158.01 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 501.63 crore in the Indian equity market on 9 December, provisional data showed.Powered by Commodity Insights