Rupee Takes A Breather After Its Meltdown To New All-Time Low Of 77.44

Rupee Dollar: 77.44 . Indian currency in losses after closing at all-time low of Rs.

After closing at a low of 77.44 in the previous session, the rupee gave relief on Tuesday with a slight increase in the rupee against the dollar in early trade.

Bloomberg on Tuesday cited the Indian currency at 77.25, up nearly 20 paise against the dollar, after hitting a new all-time low of 77.52 during the previous session.

On the NSE, the front-end futures contract showed the rupee’s close of 77.28 against the dollar after opening at 77.34.

PTI reported that the rupee opened sharply at 77.27 against the dollar, and gained 20 paise in early trade with a further strength at 77.24. It was moving in the range of 77.22 to 77.29.

In the previous session, the rupee had lost 54 paise to close at an all-time low of 77.44 against the US dollar.

Forex traders said a fall in global crude oil prices boosted investor sentiment and a weaker US currency against its global rivals also helped the rupee.

The international benchmark, Brent crude, fell nearly $1.5 to $104.5 a barrel in the previous session after sinking 6 per cent in the previous session as the coronavirus lockdown in China, the top oil importer, worried about energy demand.

Indian equity benchmarks also traded higher in opening deals on Tuesday led by gains in automobile and consumer goods stocks.

However, rising concerns over higher interest rates and weakness in global economic growth tempered the appreciation bias, he said.

In fact, while the rupee reversed and recovered some losses, bias and broader market movements point towards further downside for the currency.

The recent turmoil spread across global financial markets, with continued selloffs in riskier assets – such as world equities and bitcoin – driven by deepening, higher interest rates and their impact on economic growth concerns. At the same time, the dollar remained close to the highest level of 20 years.

Investors have avoided risk and sought safe-haven assets, as evidenced by global equities in the Red Sea.

Indeed, Asian shares fell to their lowest level in nearly two years on Tuesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.8 per cent, falling for the seventh straight session and down 17 per cent so far this year. Came.

It wasn’t much different on Wall Street.

Reuters reported that a bullish Federal Reserve’s expectations are dampening Wall Street’s outlook for stocks, with some investors now bracing for a potential bear market in the benchmark S&P 500 index.

After falling 2.5 percent on Monday, the S&P 500 was recently down nearly 16 percent from its January 3 high as it grapples with its worst four-month start in a year since 1939. The Nasdaq Composite Index entered bear market territory in March and is down nearly 26 percent.

Futures markets are pricing in the possibility of a 75 basis point hike in the Fed in June to 80 per cent — underscoring the risk of higher and faster interest rates on economic growth.

“The idea of ​​a cycle of gentle and gentle tightening has evaporated,” analysts at ANZ told Reuters.

“The reality is that the Fed cannot control the supply side of the economy in the short term, so as long as key indicators such as the labor force participation rate remain low and Chinese exports slow, the risk of inflation, and therefore interest rates, lie upside down. is,” ANZ said.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
sekabet - -

- adana eskort - eskort eskişehir - samsun eskort - bursa eskort - eskort mersin -

web tasarım