The Indian rupee USD/INR opened slightly higher at 76.26 and moved towards 76.36 against the US dollar on Thursday morning, after that the rupee fallen towards 76.06. As the session started, the domestic currency down amid U.S. dollar strengthening in the international market on coming aggressive interest rate hike by the U.S. Fed in the upcoming months to mild multi-year high inflation.
Last trading session Indian rupee was trading 0.17% lower at 76.14/$1 and went up to 76.35/$1 so far in the day. According to forex traders, unchanged foreign fund outflows and variations in global crude prices weighed on investor sentiments.
The U.S. Dollar Index has been rising sharply over the past few weeks amid rising inflation and Fed’s upcoming aggressive monetary tightening, in addition to persisting Russia-Ukraine crisis, leading to foreign investors moving their funds from developing markets like India.
Since the start of the calendar year 2022, Foreign investors have sold funds worth over Rs 1 lakh crore in Indian shares, moving to the world’s largest economy. Apart from that, Oil prices also moved over 1% on Thursday, weighing on the domestic currency, stated forex dealers.