Rupee records worst week since mid March as dollar regains strength


MUMBAI: The Indian rupee fell to a three-week low on Friday, posting its worst week in eight weeks, weighed down by broader dollar index strength.
The rupee closed at 82.1625 per US dollar, compared to 82.09 in the previous session.
Other Asian peers also showed weakness during the session, with global equities showing weak risk sentiment on weak Chinese economic data, US government finance haggling and uncertainty over interest rates.
“We’re seeing a lot of volatility in economic data, particularly in the US and across the eurozone… So based on the global scenario, the dollar is looking a little more positive,” said Arnob Biswas, head of FX research at SMC Global Securities.
He added that the USD/INR ratio saw some import demand this week, leading the rise.
The US dollar edged higher on Friday, heading for its biggest weekly gain since February, while the dollar index is up nearly 0.8% so far this week.
The US dollar benefited from safe-haven flows amid growth concerns and banking concerns.
In the meantime, investors will keep an eye on India’s domestic inflation data later in the day for clues on the central bank’s interest rate strategy.

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