Rupee Slips by 11 Paise to 87.36 Ahead of US Fed Chair Powell’s Speech

In early trade today, on August 22, the Indian rupee showed a weak performance against the US dollar. INR fell by 11 paise to 87.36 against the US dollar as a result of high demand for the US dollar in the global markets. INR opened at 87.37 per dollar and went on higher to 87.36, but failed to inch higher than this level and its previous close of 87.25. The fall came as the dollar index jumped by 0.10% to 98.72 and showcased the high demand for the US dollar in comparison to other global currencies.

The fall in INR was not drastic and was supported by Indian equity purchases by FIIs and DIIs. On August 21, Foreign Institutional Investors (FIIs) were net buyers and bought ₹1,246.51 crore worth of Indian equities. On the other hand, Domestic Institutional Investors (DIIs) bought Indian equities worth ₹2,546.27 crore. Furthermore, crude oil prices also supported the rupee, as the Brent crude futures fell by 0.18% to $67.55 per barrel.

One of the main reasons for the slight fall in the Indian rupee is the cautious sentiment of investors owing to the upcoming US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. The speech is expected to have a significant effect on the global monetary policy outlook. One more concern is the additional 25% tariffs imposed by US President Donald Trump on Indian exports, which are to kick in from August 27.

Meanwhile, domestic equities opened lower. As of 11:30 AM, the Sensex fell 0.65%, or 534.98 points to trade at 81,465.73, while Nifty fell 0.65%, or 163.15 points, to trade at 24,920.60.

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