(MENAFN- Khaleej Times) The dollar index surged 0.12% to 99.59 PTI file by A Staff Reporter
Published: Wed 6 Apr 2022, 9:55 AM
The Indian rupee declined 29 paise to 75.58 against the US dollar (20.59 against the UAE dirham) in the opening trade on Wednesday, tracking the strengthening of the American currency in the overseas market and a negative trend in Indian equities.
Forex traders said the expectations of rate hikes by the US Fed to rein in decades-high inflation are also keeping the dollar index buoyant, a key headwind for the Indian rupee.
At the Indian interbank foreign exchange, the rupee opened lower at 75.50 against the US dollar, then slipped to 75.58, registering a decline of 29 paise over its previous close.
On Tuesday, the rupee rose for the third straight session and climbed 24 paise to close at 75.29 against the US dollar.
“'The rupee is expected to weaken against the US currency tracking the overnight gains of the dollar as hawkish comments from Fed policymakers lifted the greenback,” Sriram Iyer, Senior Research Analyst at Reliance Securities, said.
Asian and emerging market peers were weaker against the US dollar this Wednesday morning and will weigh on sentiments, Iyer said, adding that investors will await cues from the RBI monetary policy meeting.
Global oil benchmark Brent crude futures advanced 0.11 per cent to $106.89 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.12 per cent to 99.59.
On the Indian equity market front, the 30-share Sensex was trading 458.91 points or 0.76 per cent lower at 59,717.59, while the broader NSE Nifty slipped 123.70 points, or 0.69 per cent, to 17,833.70.
(with inputs from PTI)
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