The Indian rupee opened slightly weaker against the U.S. dollar on Thursday, mirroring losses across Asian currency markets. As of 9:10 am, the rupee was valued at 83.12 to a dollar, marking a 0.05 percent decrease from its previous close of 83.08.
The Federal Reserve’s indication of another rate hike later this year and a smaller-than-anticipated interest rate cut in 2024 has exerted pressure on Asian markets. Analysts suggest these moves could tighten monetary conditions and potentially impact foreign capital inflow into the region.
Nevertheless, the Federal Reserve underscored that long-term forecasts are subject to change due to the unpredictability and risk associated with financial environments.
In response to these developments, analysts are closely monitoring the Reserve Bank of India’s potential actions. They predict a key level to watch within the range of 83.25-83.30 for the Indian rupee and anticipate significant potential for a downward reversal towards 82.80 and 82.50 in the near term.
Other Asian currencies have also been affected by these factors. The South Korean won declined by 0.76 percent, the Taiwanese dollar fell by 0.39 percent, and both the Philippines peso and Thai Baht dropped by 0.24 percent each. The China renminbi and Singaporean dollar also witnessed declines of 0.2 percent each.
Meanwhile, the dollar index, which measures the U.S. currency’s strength against major currencies, was trading at 105.587, reflecting an increase of 0.25 percent from its previous close of 105.33. This surge in the U.S. dollar, coupled with the Federal Reserve’s hawkish stance and rising crude oil prices, has contributed to the downward pressure on Asian currencies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
To read the full article, Click Here