A weaker U.S. dollar against major world currencies and foreign exchange inflows boosted market sentiment, but fears of a recession came after U.S. unemployment data weighed on local units, currency traders said.
Updated: Fri, 12/23/22 at 11:47am
Mumbai: The rupee was flat against the dollar in early trade on Friday as domestic stocks fell sharply and crude oil prices firmed.
A weaker U.S. dollar against major world currencies and foreign exchange inflows boosted market sentiment, but fears of a recession came after U.S. unemployment data weighed on local units, currency traders said.
In the interbank foreign exchange market, the rupee opened slightly lower by 2 paise at 82.81, from a previous close of 82.79.
Local stocks fluctuated within a narrow range between 82.82 and 82.77 in early trading. At 0950, it was flat at 82.79 to the dollar.
The U.S. dollar index , which measures the greenback’s strength against a basket of six currencies, fell 0.10% to 104.33.
Brent crude, the pricing basis for international trades, rose 0.89% to $81.70 a barrel on expectations that Russia’s crude exports from the Baltic region will fall in December.
Major stock indexes Sensex and Nifty fell nearly 1% in early trade, in line with weak Asian markets. The benchmark BSE Sensex shed 620.66 points to 60,205.56, while the Nifty shed 158.55 points to 17,968.80.
Asian markets fell on Friday as better-than-expected U.S. data fueled expectations that the Federal Reserve will continue to raise interest rates in the new year. Revised data showed the U.S. economy grew much faster from July to September than first thought, while jobless claims fell less than expected last week.
Foreign institutional investors (FII) turned net buyers in the capital market on Thursday, buying stocks worth Rs 928.63 crore, according to exchange data.
