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This is an archive article published on November 7, 2022
Rupee rises to 81.92 against US Dollar
The local unit opened at 82.14 and touched an intra-day high of 81.90 and a low of 82.32 against the greenback. The local unit finally settled at 81.92, registering a rise of 45 paise over its previous close amid a positive trend in domestic equities.
An Indian Rupee note is seen in this illustration photo. (REUTERS/Illustration/File Photo)
The rupee appreciated by 43 paise to close at a one-month high of 81.92 against the US dollar on Monday amid a weak American currency and sustained foreign fund inflows. Favourable comments from the US Federal Reserve also boosted the forex market sentiment.
The local unit opened at 82.14 and touched an intra-day high of 81.90 and a low of 82.32 against the greenback. The local unit finally settled at 81.92, registering a rise of 45 paise over its previous close amid a positive trend in domestic equities.
The currency had hit a low of 83.12 in October.
On the other hand, the Sensex closed at 61,185.15 up by 234.79 points or 0.39%, while Nifty 50 ended at 18,202.80 higher by 85.65 points or 0.47%. Midcap and smallcap stocks outperformed in the broader market. There was buying support in auto, banking, metal, oil & gas and capital goods stocks, analysts said.
Foreign investors have pumped Rs 14,538 crore into equity and debt in November so far.
Explained
US Fed comments boost sentiment
Favourable comments from the US Federal Reserve also boosted the forex market sentiment. The currency had hit a low of 83.12 in October. Foreign investors have pumped Rs 14,538 crore into equity and debt in November so far.
The US central bank’s policy statement said the Fed would consider the lagged impact of cumulative tightening on the economy, building a case for slowing down the pace of rate hikes from as early as the December policy. Market is currently pricing in the terminal Fed funds rate range at 5.00-5.25%. “Market expects the Fed to get there by June 2023. Market is expecting the Fed to cut rates sometime in the last quarter of 2023,” IFA Global said.
“Better than expected earnings and comfortable macro numbers are positive for India compared to other emerging markets. I don’t expect any drastic move in the market on either side for another couple of quarters. But it is an ideal time for those who are looking at the medium to long term,” said K Dileep, Head of PMS at Geojit Financial Services.
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