Rupee falls 28ps to 88.13/$
Positive domestic markets and expectations of fresh FII inflows may also support the local unit
Rupee falls 28ps to 88.13/$
Mumbai: The rupee depreciated 28paise to close at 88.13 against the US dollar, on hawkish Fed and a bounce back in the US dollar. Forex traders said traders assessed the US FED outlook following a rate cut.
The US FED reduced rates by a quarter point as expected and indicated that it will steadily lower borrowing costs for the rest of the year.
Moreover, the rupee remained under pressure on worries over US tariffs on India and global trade uncertainties.
Besides, sustained foreign fund outflows also dented investor sentiments. At the interbank foreign exchange, the rupee opened at 87.93 against the US dollar and touched an intra-day low of 88.16 before ending the session at 88.13, down 28paise from its previous close.
On Wednesday, the rupee appreciated 24paise to close at 87.85 against the US dollar. “The Indian rupee declined sharply on hawkish Fed and a bounce back in the US dollar.
Fed cut interest rates by 25 bps, in line with estimates. It sees two more 25 bps rate cut in 2025 and just one 25 bps rate cut in 2026.
“Fed Chair Jerome Powell does not see elevated financial risks on tariffs. However, he raised downside concerns over labour market and GDP growth,” Anuj Choudhary, Research Analyst Currency and commodities Mirae Asset ShareKhan, said.
