MUMBAI: The Indian rupee ended lower on Wednesday, pressured by likely equity outflows and as the US dollar index rose to a more than one-month high on the back of moderation in US rate cut expectations.
The rupee ended at 83.1375 against the dollar, lower by 0.08% compared with its close at 83.07 in the previous session.
The dollar index rose to a peak of 103.58 in Asia hours, its highest level since mid-December. Most Asian currencies fell, with the Korean won leading losses, down by 0.91%.
Federal Reserve Governor Christopher Waller on Tuesday said that while the US is “within striking distance” of the Fed’s 2% inflation goal, the central bank should not rush to cut benchmark interest rates.
The comments prompted investors to pare bets on aggressive rate cuts.
“A combination of weakish China data and a pushback” by European Central Bank and Fed officials against early easing is weighing on risk sentiment and supporting the dollar, ING Bank said in a note.
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