Rupee Weakens to 95.45 Amid Fed Rate Hike Fears
By ThePip Desk
Indian rupee edges lower to 95.45 against the US dollar, influenced by US inflation data and anticipation of a Federal Reserve rate hike.
The Indian rupee traded marginally weaker against the US dollar in early trade on Thursday, settling at 95.45. This move represents a 1 paisa decline from its previous close of 95.44 recorded on Tuesday.
Key Currency Levels
- Current Trading: 95.45
- Previous Close (Tuesday): 95.44
- Weakened By: 1 paisa
- Intra-day High: 95.52
- Intra-day Low: 95.40
The marginal weakening was primarily influenced by recent US economic data, which included a key inflation reading. These figures slightly bolstered expectations for a potential Federal Reserve rate hike, ahead of the Jackson Hole central bankers’ symposium commencing later today.
Factors Limiting Losses
- Easing Brent crude prices
- Foreign fund inflows
- Sustained Reserve Bank of India (RBI) intervention
Foreign institutional investors (FIIs) provided some support, purchasing equities worth Rs 502.63 crore on a net basis on Wednesday, according to exchange data. The Indian foreign exchange market remained closed on Wednesday due to the Id-e-Milad holiday.
Despite the upward pressure from US economic indicators, the combination of lower crude prices and consistent central bank action helped mitigate further significant depreciation of the rupee.