Money Market News: Rupee gets 4 in powerful FII inflows, with a closing price of 85.62 vs. USD
Rupee appreciated 4 Paise settled at 85.62 (temporary) at the dollar exchange rate on Tuesday and was encouraged by strong foreign capital inflows. However, the performance of domestic stocks, the rise in global crude oil prices and the rise of the green green guards overseas, yields are limited.
Foreign Institutional Investors (FIIS) were net buyers, receiving shares worth Rs 19,9287 crore on Monday, according to exchange data.
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On the interbank foreign exchange exchange, local units are open at 85.62, with an intraday height of 85.51, starting from the closing of 85.66 before closing at 85.62.
“The USD-INR pair continues to hover between 85.00 and 86.00, and the market is waiting for a decisive trigger. Comfortable liquidity conditions after CRR cuts reduce forward premiums, making hedging less attractive to exporters.”
He added: “The Reserve Bank of India is expected to remain active to prevent support from India’s stable macro fundamentals.”
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Stock Market Summary
On the stock side, the domestic benchmark ended a turbulent meeting. Sensex dropped 53.5 points to 82,391.7, while Nifty50 closed at 1.1 points at 25,104.3. Losses in banking expertise such as HDFC Bank and ICICI Bank are offset by earnings in IT and energy stocks.
With the U.S.-China trade negotiations entered the second day in London, global market sentiment remained cautious. Meanwhile, the U.S. dollar index rose 0.15% to 99.09. Brent crude oil received 0.18% in futures trading to $67.16 a barrel.
(Input with PTI)
Banerjee noted that the next move of USD-INR will depend on global risk sentiment and U.S. dollar index trends, adding that the ongoing disruption on DXY exceeds 100.00 could increase USD-INR above the 86.00 mark and further push towards 86.50.
