Rupee holds above record low, supported by state-run banks’ dollar sales
MUMBAI, Aug 28 (Reuters) – The Indian rupee weakened slightly on Wednesday, tracking a dip in most Asian currencies, but managed to hold above its all-time low, supported by mild dollar sales from state-run banks.
The rupee closed at 83.9525 against the U.S. dollar, a tad lower than its close at 83.9250 in the previous session.
While the currency touched an intraday low of 83.9675, it managed to hold above its all-time low, underpinned by “intermittent offers (on USD/INR)” by state-run banks, a senior trader at a foreign bank said.
“The rupee has followed a consistent pattern in recent sessions – opening strong only to lose ground as dollar buying picks up,” Amit Pabari, managing director at FX advisory firm CR Forex, said.
The dollar index was up 0.2% at 100.8 on Wednesday, while most Asian currencies slipped, led by the Korean won, which declined 0.3%.
Traders expect the rupee to find mild relief later this week, supported by up to $3 billion of inflows related to changes in the MSCI index, which tracks emerging markets equities.
U.S. personal consumption expenditure (PCE) inflation data on Friday is a closely watched global cue this week as it may help investors gauge whether the Federal Reserve is likely to deliver a 25 or 50 basis point rate cut at its September meeting.
Source from Reuters: https://www.reuters.com/markets/currencies/rupee-holds-above-record-low-supported-by-state-run-banks-dollar-sales-2024-08-28/