Rupee slips as dollar gets Fed hike expectations tailwind
On September 23, the Indian rupee ended weaker at 95.74 against the dollar amid global financial trends. Expectations of further US Federal Reserve rate hikes have increased the strength of the dollar. Asian currencies also experienced declines, with some falling 0.3%. Despite this, state-run banks helped limit the rupee's losses through dollar sales.
The Indian rupee slipped modestly against the US dollar on Wednesday, mirroring a decline in Asian currencies as investors anticipated further interest rate hikes from the US Federal Reserve, according to wire reports. The rupee slipped by 0.1% to 95.74 per dollar, down from 95.59 the previous day. Analysts noted that if the Reserve Bank of India (RBI) fails to act, India's monetary policy stance could become increasingly misaligned with global tightening trends, making the rupee more vulnerable to global risk aversion.
State-run banks' dollar sales likely cushioned the currency's decline, while the central bank may have executed dollar-rupee swap operations to manage excess liquidity. Oil prices remained under $100 per barrel, buoyed by ample Gulf crude supplies and optimism over a diplomatic solution to the US-Israeli conflict with Iran.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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