“The Indian rupee fell to an all-time low on Friday, while the dollar strengthened ahead of closely watched US labor market data that kept regional currencies on the defensive.”, — write: epravda.com.ua
The Indian rupee fell to an all-time low on Friday, while the dollar strengthened ahead of closely watched US labor market data that kept regional currencies on the defensive. Reuters writes about it. The rupee weakened to 85.97 against the US dollar, down from the previous record low of 85.9325 reached on Thursday. The currency ended the week at 85.9650, down 0.2%, and suffered its tenth straight weekly loss. The local currency has faced persistent headwinds in recent weeks amid a strong dollar and weak capital flows. However, regular interventions by the Reserve Bank of India helped limit losses.Advertisement: State-owned banks also offered dollars on Friday, most likely on behalf of the RBI, three traders told Reuters. According to a trader at one of the foreign banks, a fall in the rupee below the psychologically important level of 86 is likely to happen “sooner or later”. The dollar index held north of 109, near a two-year high ahead of the release of US nonfarm payrolls data. The data will affect expectations for the pace and depth of rate cuts by the Federal Reserve this year.Advertisement: Expectations of the new US president’s policies and a slower rate cut by the Fed have boosted the dollar and US bond yields in recent weeks. Meanwhile, foreign investors pulled more than $3 billion from Indian stocks and bonds in January.