INR likely to stay subdued amid dollar strength abroad

The Indian rupee is likely to stay cautious as greenback gains momentum ahead of Federal Reserve (Fed) Chair Jerome Powells speech later today at Jackson Hole for further clarity on Feds interest rate stance. Yesterday, rupee pared initial gains and settled for the day lower by 18 paise at 87.25 against US dollar. Rupee opened on a positive note with the rise in risk appetite in the global markets amid easing tensions over trade tariffs and hopes of truce between Russia and Ukraine. However, the strength of the American currency in the overseas market and rising crude oil prices dented investor sentiments and restricted the upmove in the local unit. Indian shares extended gains for a sixth day running on Thursday as investors continued to remain optimistic about S&P's rating upgrade for India, improving Sino-India relations and the Centre's plan to rationalize Goods and Services Tax (GST). The benchmark BSE Sensex rose 142.87 points, or 0.17 percent, to 82,000.71, extending gains for a sixth day running and notching the longest winning streak in over two months. Likewise, the broader NSE Nifty index closed up 33.20 points, or 0.13 percent, at 25,083.75, led by gains in the financial sector.

 

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