MUMBAI: The rupee weakened on Thursday, nearing near two-week lows set earlier this week, weighed down by overall dollar index strength.
The rupee closed at 82.09 U.S. dollar on Thursday, down from 81.9850 in the previous session.
The dollar index rose 0.46% on Thursday after holding steady following Wednesday’s US inflation figure.
“What we have seen in the rupee is more reflective of the dollar index. There were no major inflows or outflows during the day,” he said Dilip ParmarResearch Analyst at HDFC Securities.
Asian currencies were also mostly weaker throughout the day.
If support at 81.85 holds for USD/INR, another upleg is possible that may not be directional until resistance at 82.2 is broken, said Anand James, chief market strategist at Geojit Financial Services
Meanwhile, US inflation, which slowed slightly more-than-expected last month, offered little guidance for Federal Reserve interest rate developments.
“Overall, the CPI result should support the view that the Fed is done tightening, but it may not be dovish enough to justify the sharp rate cuts currently being priced in by the market,” analysts at OCBC wrote in a note .
Futures point to a rate cut in September.
Markets are awaiting an interest rate decision from the Bank of England later in the day while also watching India’s inflation figure, which is expected on Friday.
The rupee closed at 82.09 U.S. dollar on Thursday, down from 81.9850 in the previous session.
The dollar index rose 0.46% on Thursday after holding steady following Wednesday’s US inflation figure.
“What we have seen in the rupee is more reflective of the dollar index. There were no major inflows or outflows during the day,” he said Dilip ParmarResearch Analyst at HDFC Securities.
Asian currencies were also mostly weaker throughout the day.
If support at 81.85 holds for USD/INR, another upleg is possible that may not be directional until resistance at 82.2 is broken, said Anand James, chief market strategist at Geojit Financial Services
Meanwhile, US inflation, which slowed slightly more-than-expected last month, offered little guidance for Federal Reserve interest rate developments.
“Overall, the CPI result should support the view that the Fed is done tightening, but it may not be dovish enough to justify the sharp rate cuts currently being priced in by the market,” analysts at OCBC wrote in a note .
Futures point to a rate cut in September.
Markets are awaiting an interest rate decision from the Bank of England later in the day while also watching India’s inflation figure, which is expected on Friday.
