Rupee continues to slide on our towering rates, posting a marginal weekly loss
Indian Rupees weakened further on Friday against a stronger dollar ahead of the speech by the Chairman of Federal Reserve Jerome Powell, ending an unstable week for Asian currencies that had been suppressed by uncertainty related to US tariffs.
The currency closed 0.3% lower on Friday at 87,5300, against the closing of 87.27 in the previous session. It dropped 0.02% for a week.
The local unit, which opened at 87,4575 on Monday, saw a sharp swing throughout the week due to domestic and geopolitical developments.
Talks between US President Donald Trump and Russian President and Ukraine, coupled with the tax deduction proposed by the Indian government, pushed Rupees above 87 handles for the first time this month on Tuesday.
However, concerns about the tariffs of Indian goods, which will be valid on August 27, and the demand for importers for Greenback burdens the currency on Thursday when he posted a decrease in the biggest day in a month.
“Overshadowing Indian goods and criticisms for the purchase of Russian oil make a weak sentiment, with the risk of advanced downside (expected in) rupees until September,” said Jigar Trivedi, a senior currency analyst at Reliance Securities.
Meanwhile, the dollar index rose 0.14% at 98,742, at 15:37, and inching to 99-signs in front of Powell’s speech at the Jackson Hole symposium later on.
His comments will be examined for instructions on the September interest rate cutting and the policy track for the rest of this year.
Investors have prices in a chance of more than 80% for cutting next month, but the question is whether Powell will encourage again with such aggressive hopes. While his new comments were leaning to Hawkish, they came before the July Job Report was weaker.
Most of the Asian currency traded lower on Friday, with the Taiwan dollar and the Indonesian rupiah fell sharply against the dollar and leading losses, while Korea won and the Philippine peso rose in intraday trade.
Source: Reuters
