MUMBAI: The Indian rupee fell on Tuesday, likely thanks to dollar
Outflows
from a serious foreign bank and pressure on rising US yields, traders said.
The rupee was quoted at 81.9250 against the US dollar at 10:54 am. IST, a coffee of 81.7950 within the previous session.
A major American bank. It's totally on bid (in USD/INR),
said a spot trader at a public sector bank.
This might be associated with the immediate outflow of dollars, he said.
The Indian rupee finishes up being less converted to likely dollar
Purchases by the RBI Possible exhaustion of dollar short positions within the wake of Federal Reserve Bank of India's intervention might be one more reason,
the trader added. Other Asian currencies were broadly lower after an overnight rise in US yields.
The two-year US Treasury yield. Rose nearly 4% again before US inflation data. Which appears on Wednesday.
The dollar index was slightly higher at 101.48.
The inflation pressure comes after the Federal Reserve System last week signaled a conditional pause within the way economic data develops
and therefore the bottom line for investors to cost rate cuts starting in September.
"(A) Strong (inflation) print could reverse subdued market expectations which would be an upside risk to the US dollar,"
OCBC analysts said during a note. Following the increase in US yields, rupee futures premiums fell.
The implied 1-year USD/INR yield fell to 2.17%. “There is sweet interest from a business perspective. A spot at around 82 provides another excuse,” the trader said.
The rupee fell against the US dollar.
The Indian rupee closed at 82.50 to the US dollar, down 7 pounds, as the greenback strengthened in overseas markets and on weakness in local stocks.
The Indian currency is under pressure because of the debt ceiling stalemate. Ahead of US GDP data and pending home sales,
traders are expected to remain cautious despite a steady recovery in crude oil prices.
According to Share khan, the spot rate for the USD/INR pair is expected to trade between 83.30 and 82.30.
The local unit opened at 82.50 against the dollar and settled at 82.50, down 7 pounds from its previous close.
The rupee traded between a high of $82.70 and a low of $82.78 against the dollar.
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