MUMBAI: The Indian rupee ended marginally lower on Wednesday in line with Asian peers on global dollar strength, but volumes dipped due to a strike by state-run lenders in northern India.
Most emerging Asian currencies skidded lower as the dollar climbed to a seven-year high against the yen, on a more bullish outlook for the world's largest economy.
All eyes are now on the European Central Bank policy meeting on Thursday amid speculation that the euro zone will opt for further quantitive measures to stoke up inflation. Further ahead, the focus will be on US jobs data on Friday.
"The rupee has so far ignored the weakening in the euro, and if the US employment data tuns out to be strong, then the rupee will start moving in a bigger range," said Chintan Karnani, chief analyst at Insignia Consultants, a currency risk advisory firm in New Delhi. The partially convertible rupee closed at 61.9050/9150 per dollar compared with 61.88/89 on Tuesday.
State-run bank unions across India are pressing for early wage increases through a 4-day relay strike action, their third nationwide in the last year.
Wednesday's session was marked by a strike at lenders based in the country's north. Bank staff in the Western region, including Mumbai, will be off work on Friday. In the offshore non-deliverable forwards market, the one-month contract was at 62.15/25, while the three-month was at 62.65/75.
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