RIYADH: The Indian rupee strengthened against the dollar on Monday, tracking other Asian currencies and following slight gains in the domestic share market.
The rupee had weakened to a record low of 79.96 against the dollar last week, weighed down by broad gains as red-hot inflation data raised fears of more aggressive policy tightening by the US Federal Reserve.
The partially convertible rupee rose to 79.73 per dollar at one point, compared with Friday’s close of 79.88. It was trading at 79.83, as of 0417 GMT.
Indian shares start week higher on tech, metal boost
Indian shares hit one-week highs on Monday, as investors snapped up the beaten-down information technology and metal stocks, while a bounce in global equities also aided broader investor sentiment.
The NSE Nifty 50 index was up 0.81 percent at 16,180, as of 0509 GMT, while the S&P BSE Sensex rose 0.76 percent to 54,192.08. Both the indexes hit their highest since July 11, after recording their first weekly loss in four on Friday.
The Nifty IT index, which is down more than 30 percent this year, gained 3.3 percent.
The metals index, which has fallen over 28 percent in the last two months, rose 1.7 percent. Industrial metal prices gained on Chinese regulators’ latest efforts to avert a potential crisis in the country’s real estate market, which consumes a vast amount of metals.
Morgan Stanley trims India’s GDP forecast to 7.2 percent
Morgan Stanley cut its forecast for India’s annual growth to 7.2 percent for this year, as tighter financial conditions and a slowdown in global trade have pressured major economies around the world.
The brokerage’s forecast, down from its previous projection of 7.6 percent, comes after India’s economic growth slowed to the lowest in a year in the first three months of 2022 at 4.1 percent. The revised target is in line with the Reserve Bank of India’s view.
For the next year, Morgan Stanley expects annual gross domestic product to touch 6.4 percent.
India’s annual consumer inflation, which touched multi-year highs in the past few months, eased marginally to 7.01 percent in June. The brokerage expects more respite ahead.
(With input from Reuters)
