MUMBAI: The rupee dipped to a low of 84.09 in intraday trades earlier than closing flat at 84.08 within the interbank foreign exchange market on Wednesday. The greenback strengthened in opposition to most worldwide currencies as markets decreased expectations of a 50 foundation level lower in rates of interest by the US Federal Reserve.
Dealers additionally famous that the likelihood of a Trump win is supporting the greenback, whereas the rupee faces ongoing strain from sustained gross sales by overseas institutional traders.KN Dey, a foreign exchange marketing consultant, mentioned, “The volatility in currency markets will continue and may extend till Jan 2025, when the new US President takes over on Jan 20.” The Dollar Index has surpassed 104 amid hypothesis that final month’s 50 foundation level charge lower was untimely and thus, reducing probabilities of increased US charge cuts.
Dealers mentioned that the rupee had weakened to 84.19 within the non-deliverable ahead market. However, RBI is making certain that there’s minimal volatility within the spot market promoting {dollars} in order that the rupee trades in a slim vary.
