INR Pulls Back From Four Month High; Dollar Strength, Negative Equities Weigh

Published on Jan 16, 2024 17:25

The Indian rupee slumped 23 paise to end at 83.09 (provisional) against the US dollar on Tuesday, as a strong greenback against major rivals overseas and negative equity market dented investor sentiment. Volatile crude oil prices in the international markets also weighed on the domestic currency. At the interbank foreign exchange, the domestic currency opened at 82.95 and traded in the range of 82.92 to 83.09 against the greenback during intra-day. The benchmark S&P BSE Sensex ended the session down 199.17 points, or 0.27 percent, at 73,128.77. The broader NSE Nifty index settled 65.15 points, or 0.29 percent, lower at 22,032.30. Reduced expectation of a Federal rate cut anytime soon coupled with safe haven demand amid geo-political tensions is keeping the global currency supported. The dollar index that measures the greenback against a basket of currencies is hovering at a one-month high and quoting at 102.95, up 0.78% on the day. This week the US will release Retail Sales figures from December and the Fed�s Beige Book.