INR Recovers Against US Dollar After Recent Volatility

Indian Rupee has bounced back from around record lows today as local stock markets edged up following a heavy intraday tumble in last session. The key equity indices extended gains and hit the day's in mid-morning trade. The Nifty traded above the 22,400 level. At 11:30 IST, the barometer index, the S&P BSE Sensex was surged 1,623.46 points or 2.26% to 73,708.60. The Nifty 50 index jumped 532.20 points or 2.43% to 22,416.70. NIFTY had tested nearly four month low as markets were rattled by outcome in Lok Sabha elections 2024.

Economic cues were steady though. The seasonally adjusted HSBC India Services Business Activity Index remained comfortably above the neutral mark of 50.0 in May, highlighting a sharp upturn in output. That said, the headline figure fell from 60.8 in April to 60.2. Growth was reportedly supported by rising sales, productivity gains and demand strength. The upturn was somewhat hampered by competitive and price pressures.

INR was also supported by hefty losses in Crude oil which tested around four month low near $73 per barrel for WTI futures. The local currently quotes at 83.38 per US dollar, up 12 paise on the day.

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