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Rupee Snaps 7-Day Losing Streak, Settles Higher To 76.09 Against Dollar

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Rupee Snaps 7-Day Losing Streak, Settles Higher To 76.09 Against Dollar

Rupee Vs Dollar Today: The rupee settled at 76.09 against the dollar

The rupee snapped its losing streak and clocked its first gain in seven sessions on Thursday, December 16, rebounding 23 paise to settle at 76.09 against the dollar as participants took note of weakening of the greenback after US Fed turned hawkish. At the interbank foreign exchange market, the local unit opened at 76.31 against the dollar and registered an intra-day high of 76.06. On Wednesday, December 15, the local unit plunged by 44 paise to close at a 20-month low of 76.32 against the dollar. The US Federal Reserve signaled multiple interest rate increases next year.

The appreciation bias in the rupee might be curtailed, amid growing concerns over the Omicron variant of coronavirus, firm crude oil prices and persistent foreign fund outflows, according to forex traders. Meanwhile, the US dollar index, which measures the greenback’s strength against the basket of six currencies, fell 0.37 per cent to 96.15.
 

Mr Amit Pabari, MD, CR Forex: 

”As widely expected in the market, Fed doubled the pace of bond tapering from $15 bln to $30 bln/month and expected to wind up the program by March-2022. The Fresh *‘Dot Plot’ suggests 12 out of 18 policymakers see 3 rate hikes next year which is far more aggressive than the September meeting. 

However, despite the very hawkish policy, the US dollar index fell up to 96.20 levels as safe-haven demand fell out of favor. The US stock market jumped to near record highs and gold/crude oil jumped on a weaker dollar. 

In absence of a big IPO or fundraising activity; the rupee will take guidance from the other factors. Overall, we are expecting higher volatility in the pair with an expected short-term range of 75.00-76.50.”
 

Domestic Equity Markets Today:

On the domestic equity market front, the BSE Sensex ended 113.11 points or 0.20 per cent higher at 57,901.14, while the broader NSE Nifty climbed 27.00 points or 0.16 per cent to 17,248.40.

Prashant Tapse, Vice President (Research), Mehta Equities Limited:

”The benchmarks finally ended a super volatile session on a positive note, thanks to short covering in heavyweight stocks like Reliance Industries, Infosys & Bajaj Finance. Bank Nifty was unfortunately an underperformer. Even the broader markets were not in sync with the up move as Midcap & Smallcap indices ended in red.

The picture has become murkier for benchmarks in near term as Fed has signaled three rate hikes for 2022. The Fed has also said it will trim $30 billion from its original $120 billion program of monthly purchases of Treasuries and mortgage-backed securities, up from a $15 billion cut previously outlined.”

According to stock exchange data, the foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth Rs 3,407.04 crore. Brent crude futures, the global oil benchmark, rose 1.12 per cent to $74.71 per barrel.

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