MUMBAI: The Indian rupee declined against the US dollar on Tuesday, weighed down by losses in its Asian peers as Federal Reserve policymakers tempered US rate cut expectations, while demand for the greenback from importers also hurt.
The rupee closed at 83.18 versus the US dollar, down from 83.06 in the previous session.
“Today’s session confirmed what (USD/INR) bears would have feared. That there will not be any follow through to Friday’s drop,” a FX trader at a bank said.
The local unit on Friday posted its best single-day performance in nearly eight months.
Importers “might have rushed to buy” following the rally in the rupee, said Amit Pabari, managing director at CR Forex. The downside on the USD/INR will be restricted to around the current 83.15-83.20 level, he added.
The jump in portfolio inflows is expected to help the rupee. Foreign investors have bought $7.7 billion of Indian equities so far this month, the highest monthly value this year. The rupee’s Asian peers were mostly lower, with the Japanese yen leading the way after the Bank of Japan left policy settings and the forward guidance unchanged.
Comments
Comments are closed for this article.