Indian Rupee: Likely to stay pressured amid dollar strength overseas

The Indian rupee is likely to stay pressured in opening trades on Wednesday tracking a sharp upside in dollar overseas and cautious local equities as investors weigh global uncertainties. Accelerating gains in dollar index to a one-week high above 99.50 mark is seen weighing on the local currency. Yesterday, rupee snapped its recent rally tracking notable fall in domestic equities and recovery in the US dollar overseas and depreciated 27 paise to 85.37 against the US dollar. The benchmark 30-share BSE Sensex dropped 624.82 points, or 0.76 percent, to 81,551.63, with financial and IT stocks coming under heavy selling pressur e. The broader NSE Nifty index ended down 174.95 points, or 0.70 percent, at 24,826.20 while the BSE mid-cap and small-cap indexes edged up by around 0.2 percent each. Meanwhile, foreign direct investment in India fell 24.5 per cent year-on-year to USD 9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at USD 50 billion during the entire previous financial year, according to the government data released on Tuesday. Investors moved cautiously awaiting domestic industrial and manufacturing production data for April as well as the first quarter GDP growth numbers to be released this week.

Powered by Commodity Insights