Rupee Slips Against US Dollar Amid Fed Rate Hike Hints
By ThePip Desk
The Indian rupee drops 8 paise to close at 95.70 against the US dollar, pressured by hawkish Federal Reserve remarks and ongoing FII outflows.
The Indian rupee weakened against the US dollar on Wednesday, ending the provisional session at 95.70. This marked a decline of 8 paise from its previous close of 95.62 recorded on Tuesday.
Key Currency Levels and Trading Range
During the session, the domestic currency fluctuated between specific technical boundaries. It touched a high of 95.57 and a low of 95.76.
- Closing level: 95.70 (Provisional)
- Previous close: 95.62
- Daily change: Weakened by 8 paise
- Intraday high: 95.57
- Intraday low: 95.76
Federal Reserve Remarks and FII Pressure
Persistent dollar strength drove the downward movement, supported by hawkish comments from several Federal Reserve officials. St. Louis Fed President Alberto Musalem, Richmond Fed President Tom Barkin, and Boston Fed President Susan Collins all stressed that additional interest rate hikes may be needed to control inflation.
Continuous fund outflows from foreign institutional investors further weighed on the domestic currency. Foreign institutional investors acted as net sellers during Tuesday’s session, offloading securities worth Rs 3,809.99 crore.
Global Currency Movements
On the international front, broader currency adjustments also unfolded on Wednesday. The British pound weakened against the US dollar following the release of weaker-than-expected UK purchasing managers index data.