The US dollar fell from its gain against the Indian Rupee to 77.98.
The rupee opened at 78.02 against the dollar, a change of 2 paise from yesterday’s close. Indian rupee dropped to 77.90 against the American dollar, but it quickly rose back up to 78.06.
The rupee depreciated to a new low on Monday. Sriram Iyer, a Senior Research Analyst at Reliance Securities stated that the Indian Rupee opened flat with the US dollar on Tuesday as gains from easing domestic inflation worries negated the overnight strength of the US dollar.
The government and the RBI had to take many measures against inflation in May. They raised the repo rate, as well as imposed duty hikes. These were necessary because prices were going up too quickly due to food and fuel.
Five months in a row, the print of inflation has been equal to or above the Reserve Bank’s upper tolerance level, prompting them to consider raising the repo rate at their next meeting.
Meanwhile, crude oil prices remained elevated on Tuesday morning and caused expectation bias in trading to be low.
The most recent inflation rates in Asia, a booming market, have been mixed this week.
The dollar index rose 0.01 percent to 105.08, supported by fears of a global economic slowdown and expectations of an aggressive rate hike path from the United States Federal Reserve. The dollar index gauges the greenback’s strength against a basket of six currencies.
Trading on the Bombay Stock Exchange in India was down 0.27%. Banking stocks were taking a hit, as indicated by Kotak Mahindra Bank, which fell by 4.1%.
Foreign investors sold stocks worth Rs 4,164.01 crore on Monday, according to data from the bourses.