The rise in U.S. bond yields has led to global references to the Greenback. It rose to 102.69 against the dollar today. The index was at 102.10 at the end of the previous week.
The Federal Reserve is expected to raise rates by 50 basis points at each of its policy meetings in June and July. So far in 2022, the US Federal Reserve has already raised interest rates by a total of 75 basis points.
Over the past few months, foreign investors have been trying to exit the Indian stock market. These companies have sold shares worth Rs 1.7 lakh crore so far in 2022.
Forex dealers said weak opening in the stock market and weak dollar against other Asian currencies also kept the rupee sentiment firm. Shares of Sensex and Nifty fell 0.8 per cent at 9:45 am on fears of a rise in the Reserve Bank of India’s aggression tomorrow.
The Reserve Bank’s monetary policy committee is expected to raise the repo rate by 25-50 basis points to tackle higher domestic inflation. Brent crude futures rose 19 cents, or 0.2 per cent, to $ 119.70 a barrel. US West Texas Intermediate crude futures rose 25 cents, or 0.2%, to $ 118.75 a barrel. Yesterday’s benchmark hit a three-month high of $ 120.99.