Dollar Index On Brink Of Recapturing 100 Mark; USDINR Rebounds

Published on Jul 19, 2023 17:10

USDINR rebounded on Wednesday as dollar gathered strength after wallowing near 15 month lows since last week. The dollar index bounced higher on Wednesday following a sharp plunge over the last two weeks after consumer price inflation printed a moderating trend, reducing bets of a hawkish Federal stance. Next week`s FOMC statement is expected to throw further clarity on the onward Federal stance. The dollar index that measures the greenback against a basket of currencies is currently on the brink of recapturing 100 mark. USDINR ended at 82.13, up 0.07% on the day.

Meanwhile, in the spot market, rupee depreciated by 6 paise to close at 82.10 (provisional) against the US dollar on Wednesday. Rebound in the American currency in global markets and firm crude oil prices weighed on the unit although domestic equity benchmarks scaling all-time high levels and sustained foreign fund inflows boosted investor sentiments and restricted the depreciating bias. At the interbank foreign exchange, the domestic unit opened at 82.08 against the dollar and settled at 82.10 (provisional), down 6 paise from its previous close. During the day, the rupee touched a high of 82.07 and a low of 82.15 against the greenback.