The risk of weakness in currencies in the emerging economies in Asia is worrisome, and more so the risk is greater in India with a new bout of rupee weakness, which could force its central bank Reserve Bank of India to "press harder on the brakes", according to Moody's Analytics.
Monetary policy tightening by various central banks to contain inflation, the war in Ukraine leading to price rise for crude oil and subsequent realignment in the global energy supply chain, and strengthening of the US dollar index kept the Indian currency under pressure in 2022.
Robust foreign fund inflows into Indian equities, the appreciating Rupee, and hints by the US central bank about the moderating rate of interest hikes supported investors' sentiment.
The rupee has come substantially off its all-time low. Currently, it is trading around 81.64-81.70 against the US dollar as against its record low of 83 it breached in mid-October, primarily due to the strength in the US Dollar Index.
At the time of writing this report, Sensex traded at 62,393.27 points, up 99.63 points or 0.16 per cent, whereas Nifty traded at 18,536.10 points, up 23.35 points, up 0.13 per cent.
At the time of writing this report, Sensex traded at 61,519.68 points, up 100.72 points or 0.16 per cent, whereas Nifty traded at 18,275.75 points, up 31.55 points or 0.17 per cent.
At 9.47 am, Sensex traded at 61,235.72 points, up 90.88 points or 0.15 per cent, whereas Nifty traded at 18,180.70 points, up 20.75 points or 0.11 per cent.
At the time of writing this report, Sensex traded at 61,771.83 points, up just 21.23 points or 0.034 per cent, whereas Nifty traded at 18,328.90 points, down 15.00 points or 0.082 per cent.
At the time of writing this report, Sensex traded at 61,932.20 points, down 48.52 points or 0.078 per cent, whereas Nifty traded at 18,385.10 points, down 24.55 points or 0.13 per cent.
At 9.57 am, Sensex traded at 61,782.52 points, down 90.47 points or 0.15 per cent, whereas Nifty traded at18,380.55 points, down 22.85 points or 0.12 per cent. Notably, Sensex tasted a record high of 61,873 on Tuesday.