Rupee Wrap - July 6, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended marginally stronger on Wednesday as fears of a global recession hit investor sentiment ahead of the release of the U.S. Federal Reserve's June meeting minutes.

Dollar selling by the central bank and stronger domestic equities also help prevent further fall of the local unit this Wednesday.

The Rupee ended at 79.3025/dollar near after retesting the all-time lows of 79.375/dollar on Wednesday from 79.37/dollar close on Tuesday.

Asian and EM peers were mixed, but Asian equities were lower on Wednesday ahead of Fed minutes tonight.

Crude oil recovered this Wednesday, but prices have finally come under pressure amid recessionary fears and further fall in crude prices could aid sentiments back home.

Meanwhile, after spot market hours the NDF strengthened this Wednesday afternoon session after the RBI to increase forex inflows to limit Rupee's fall.

NDF is currently trading at 79.02-79.03/dollar this Wednesday afternoon session after testing a high of 78.86/dollar.

In the overseas markets, the Dollar Index races higher towards $107 levels Wednesday afternoon as renewed recession fears sent investors to the safe-haven currency.

Investors look to cues from Fed minutes, while JOLTS jobs openings and ISM non-manufacturing data could also have an impact on markets.

The Euro extended losses this Wednesday afternoon weighed down by higher gas prices and political uncertainty.

The Pound Sterling also extended losses Wednesday afternoon after markets were bracing for more political uncertainty with investors wondering whether Prime Minister Boris Johnson will survive an exodus of support.

The Japanese Yen strengthened against the dollar this Wednesday afternoon trade supported by safe haven buying for the currency.

Source : Equity Bulls

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