Despite a recovery in crude oil prices and a resurgent dollar index, which has risen by more than 3.5% since testing lows of 104.63 two weeks ago, the Indian rupee has fallen towards a three-week low. Various Fed policymakers have stressed the need for further super-sized rate hikes to combat elevated price pressures, along with upbeat US economic data, which has supported the greenback’s recent gain. In addition, the steep correction witnessed in domestic equities has further weakened the rupee.

The pair will likely trade between 80.10 and 79.20 in the near future, with 80.10 as crucial support. An exchange rate breach of the essential 80.10 mark would further exacerbate the rupee-dollar decline.

Next week, the Jackson Hole Symposium will provide further guidance about how high US borrowing costs will be.

FAQ:-

1- What is the range of the domestic currency?

Ans – 80.10 and 79.20, where 80.10 is a crucial support.

2- When The Fed Chair is anticipated to give more direction over how high US borrowing costs will be?

Ans – next week

3-What are the benchmark indices?

Ans – Standardized indices recovered from early losses and reached a day’s high trading with Nifty above 17500.