The Indian currency opened at 79.73 and touched an early low of 79.79 in opening deals.
The Indian currency opened at 79.73 and touched an early low of 79.79 in opening deals.
The rupee witnessed a range-bound trade in early trade on Tuesday, July 26, 2022, as firming crude prices and concerns about the US Fed offset support from the US currency’s overnight weakness.
At the interbank foreign exchange, the rupee opened at 79.73 against the dollar and moved in a narrow range. It touched an early low of 79.79 in opening deals.
On Monday, the rupee had gained 12 paise to close at 79.78 against the US dollar.
Traders said that the rupee opened with a slight strength on Tuesday morning in view of the overnight weakness of the dollar. However, sluggish domestic equities and foreign fund outflows weighed on the local unit.
Sriram Iyer, Senior Research Analyst, Reliance Securities, said investors will wait for new triggers from the US Fed event this week and may find themselves refraining from taking large positions.
But higher oil prices, fears of global growth and the Fed’s encouragement can limit price hike bias, Iyer said.
Experts believe the dollar could bounce back on expectations of an aggressive US Fed and aggressive rate hikes at the Federal Open Market Committee (FOMC) meeting later this week.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 106.37.
Global oil benchmark Brent crude futures rose 1.31 per cent to $106.61 per barrel.
Foreign institutional investors remained net sellers in the capital markets on Monday, offloading shares worth 844.78 crore, as per exchange data.