INR SLIDES AS INVESTORS TURN CAUTIOUS AHEAD OF FOMC

Published on Apr 29, 2024 17:20

The Indian rupee declined 10 paise to close at 83.48 (provisional) against the US dollar on Monday, as investors remained cautious ahead of the US Federal Reserve`s monetary policy decision. Investors are eying FOMC due this week as economic data indicates that inflationary pressures are staying firm. Data from the Commerce Department showed the Federal Reserve`s preferred measure of inflation, the personal consumption expenditures price index, exceeded expectations on an annual basis in March. The report said the annual rate of consumer price growth accelerated to 2.7% in March from 2.5% in February. US benchmark treasury yields are staying elevated at 4.6% and dollar index hovers very close to 106 mark. Meanwhile, a robust sentiment in the domestic equity market and softening crude prices in the international market, cushioned the downfall in the Indian currency. The benchmark S&P BSE Sensex ended the session up 941.12 points, or 1.28 percent, at 74,671.28 after U.S. equities notched the best weekly rally of 2024 on the back of earnings reports from technology heavyweights Alphabet and Microsoft. The broader NSE Nifty index settled 223.45 points, or 1 percent, higher at 22,643.40. At the interbank foreign exchange market, the local unit opened weak at 83.39 and touched the intra-day low of 83.51 against the greenback during the session.