The currency dealer cited above said the RBI had likely intervened in the market through dollar sales at 78.24-78.25 levels.Ĭurrency analysts also pointed out a sharp fall in dollar/rupee forward premia due to the aggressive pace of the Fed’s rate hikes vis-à-vis the speed at which the RBI has tightened monetary policy. ![]() On one hand, (policy) rates are moving up, and on the other, the domestic currency is on a weak trajectory,” India Ratings Director Soumyajit Niyogi told Business Standard.ĭealers said that while the Reserve Bank of India had likely intervened in the currency market, the central bank was looking at preventing excessive volatility rather than stopping the rupee from depreciating in the face of global headwinds. Foreign institutional investors have turned record sellers of Indian equities this year, with their net sales so far in CY22 at Rs 2.08 trillion, NSDL data showed. Higher US interest rates diminish the appeal of riskier emerging-market assets. Foreign banks were also said to be buying dollars on behalf of overseas investors looking to reduce exposure to Indian assets, the trader said. Brent crude futures were down $6.51, or 5.68 per cent, to $108.14 a barrel while US West Texas Intermediate (WTI) futures fell $6.79, or 6.2 per cent, to $102.73 by 6.45 pm IST.ĪLSO READ: Govt to use ration card database for other welfare programmes: Food SecyĬrude oil prices have surged since the start of the war in Ukraine, posing significant worries for India over the current account deficit and inflation. The index, which rose to a high of 104.95 during the day, had settled at 104.44 in the previous session.Ĭonsistent purchase of the US dollar by state-owned banks, likely on behalf of oil marketing companies, dragged the rupee lower, a currency trader with a state-owned bank said.Ĭrude oil prices declined on Wednesday owing to steps being considered by the US administration to soften the price of the commodity. The US dollarindex, which measures the greenback against six major rival currencies, was at 104.54 around the Indian market closing hours. In 2022, so far, the Fed has hiked rates by 150 bps. Powell’s comments shall help gauge the extent to which the US central bank will tighten monetary policy to combat 41-year high inflation in the country. Wednesday’s closing level also marks the new record intraday low for the rupee versus the dollar prior to this, the domestic currency had touched an intraday low of 78.28 on June 13.Īfter going for a 75-basis point rate hike earlier this month, the Federal Reserve is likely to raise interest rates further at its next policy meeting in July. The rupee slipped 31 paise from Tuesday’s closing figure of 78.08. With the financial marketsanxiously awaiting cues regarding the future course of monetary policy tightening in the world’s largest economy, investors shunned emerging market currencies and preferred the safety of the American dollar. ![]() Foreign portfolio investors (FPIs) sold shares worth Rs 2,920 crore, taking their month-to-date selling tally close to Rs 45,000 crore.īoth rupee and equity benchmark indices declined sharply on the day when crude oil, too, slipped around 6 per cent amid recession fears and a push by US President Joe Biden to cut taxes on fuel in view of soaring inflation. ![]() The Sensex tumbled 709.54 points or 1.35 per cent to close at 51,822.53. ![]() The equity markets, too, resumed decline after a two-session breather. The rupee slumped to a fresh all-time low of 78.39 against the US dollaron Wednesday as risk appetite diminished further ahead of US Federal Reserve Chair Jerome Powell’s Congressional testimony scheduled after Indian market hours.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |