INR recovers momentum on positive equities

The Indian rupee is recovering momentum in opening trades on Monday tracking a sharp drop in dollar late last week. Besides, positive cues from equities are also supporting the counter. Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from Wall Street on Friday, on an improved outlook for interest rates after US Fed Chair Jerome Powell's dovish comments at the conference in Jackson Hole on Friday. Powell said economic risks are 'shifting' and a rate cut may be warranted. On Friday, rupee fell 27 paise to close at 87.52 against the greenback. Indian shares fell sharply on Friday, taking rupee to a one-week low. The benchmark BSE Sensex tumbled 693.86 points, or 0.85 percent, to 81,306.85, snapping a six-day winning streak. The broader NSE Nifty index fell 213.65 points, or 0.85 percent, to 24,870.10. However, inflow of foreign funds and a drop in Brent crude prices supported the domestic unit at lower level.

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