News
oi-Kuntala Sarkar
US Dollar index hits 52-week high level and stood at 106.10. Today, on July 5, the currency has been hot, the day’s low was at 105.05. in the past 1 year, the US currency has gained sharply by 14.76% internationally. The 52-week low level of the US Dollar index is 91.78. This is going to leave a significant impact on the Indian stocks markets and global commodity markets. The US Stocks markets are also going to gain strength.
However, in India, the stock markets are not expected to accept this US Dollar gain positively. Already, the Indian stock markets have been dealing with FII (foreign institutional investor) outflow for the past month. The US interest rate hike and sharp gain in the US dollar index have been influencing to invest in the US bonds or US stock markets. Compared to the US currency, Indian Rupee has fallen sharply recently. So, along with the foreign investors, Indian investors were also relying on the foreign markets. So, the equity markets in the country can further come under pressure.
Nifty stood at 15,876.20 points, gaining by 0.26% and Sensex stood at 53,295.83 points, gaining by 0.11% today, till 2.44 pm. This is the last trading hour of today. But, after the US Dollar’s sharp rise globally, from tomorrow, the Indian stock markets can be cold. Investors are being cautious about any volatility.
However, analysts are thinking that Central Banks’ views and the US employment data which will be published this Friday, will provide a better direction for the US currency.
Story first published: Tuesday, July 5, 2022, 14:54 [IST]
