USDINR Futures Strengthen Well Past 82 Mark Ahead Of Fed Minutes

Published on Jul 05, 2023 17:42

USDINR futures on the NSE gained on the back of dollar strength to end the day higher by 0.33% at 82.34. The dollar is gaining momentum ahead of the crucial FOMC minutes due later in the global day that is likely to shed some light on future Federal rate stance. On the spot market, rupee fell 22 paise to close at 82.23 (provisional) against the US dollar weighed down by a weak tone in local equity markets and disappointing domestic macroeconomic data.

The business activity growth in India`s services sector moderated to a three-month low in the month of June while output charges saw the sharpest rise in close to six years, a private survey showed on Wednesday. The S&P Global India services Purchasing Managers` Index (PMI) fell to 58.5 last month from 61.2 in May. Data on Tuesday showed that India`s manufacturing PMI fell to 58.7 in June from 57.8 in May. India`s composite PMI reading slipped to 59.4 in June from 61.6 in May. Demand for Indian services continued to surge higher in June, with all four monitored sub-sectors registering quicker increases in new business inflows.

The strength of the American currency in the overseas market and firm crude oil prices also put downside pressure on the rupee. At the interbank foreign exchange, the domestic unit opened at 82.05 against the dollar, and finally settled at 82.23 (provisional), down 22 paise from its previous close.