INR Recovers From Lifetime Lows Drawing Support From Sharp Drop In Crude Prices

Published on Sep 20, 2023 16:59

The Indian rupee made a good come back on Wednesday following a sharp drop to lifetime lows earlier in the week. Rupee surged by 22 paise to end at 83.10 (provisional) against the US dollar today, supported by losses in global crude prices and a weak dollar ahead of the US Federal Reserve`s policy decision. The domestic unit opened strong at 83.22 against the dollar and traded in the range of 83.27-83.06 against the greenback. The dollar index that measures the greenback against a basket of currencies continues to hover around a six month high of 104.82 amid rising benchmark US bond yields as investors stay focused on the conclusion of a two-day Fed meeting later in the day. US yields hit a 16-year high ahead of Federal Reserve`s policy meeting on Wednesday with benchmark 10-year Treasury yield touching a session high of 4.37%, its highest level since early November 2007. WTI Crude oil futures were registered a sharp drop to a one-week low and was currently trading at 89.91. Sharp fall n domestic equities however restricted gains in the domestic unit. The benchmark S&P BSE Sensex plummeted 796 points, or 1.18 percent, to 66,800.84 while the broader NSE Nifty index settled 231.90 points, or 1.15 percent, lower at 19,901.40. On the NSE, USDINR futures settled at 83.12, down 0.28% on the day.