Rupee slips 0.3% on-week, traders reckon ‘line in sand’ near 96/$ will hold
The rupee ended at 95.8750 per dollar, up modestly on the day but logged a 0.3% week-on-week fall.
The Indian rupee experienced a slight weekly decline of 0.3% on Friday, with traders speculating that the exchange rate near 96/$ might act as a barrier, supported by central bank intervention. The rupee closed at 95.8750 per dollar, up marginally on the day. The Federal Reserve and the Bank of Japan increased interest rates this week, amid rising global inflation due to the Iran conflict.
This has negatively impacted risk assets, including emerging market currencies and equities. Although oil prices rose to near four-month highs earlier in the week, they have since declined following reports of Saudi Arabia's plans to restore half the capacity of its East-West oil pipeline within days. Investors are now cautiously watching whether the Federal Reserve's policy stance will prompt similar actions from Asia, with India and the Philippines expected to raise rates next quarter, according to DBS.
The Reserve Bank of India is closely monitoring the situation, maintaining a firm stance against the rupee's depreciation towards the 96 mark.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
