The Indian rupee logged into its worst day in three weeks on Tuesday, reduced the weakness in the demand for dollar related to the termination of regional peers, importer hedging and non-liberal forward contracts.
In the previous season, below 86.6950, the rupee ended at US $ 87.21. The domestic unit slipped 0.6% a day, with its biggest single day since February 5.
The rupee suffered some losses as the Central Bank intervened to support the currency after a decline due to the demand for greenback related to derivative expiry.
A private sector bank trader said, “You have a demand for dollar on maturity of NDF posts, importer hedging and maturity of weak Asian signals – all factors stand against the rupee, provide very few spaces for appreciation, “A bank trader of a private sector bank said.
Trader said that the hopes of strong intervention by the Reserve Bank of India have reduced the speculative situation against the rupee.
The dollar index reached 106.79 after falling at a two -month low of 106.35 on Monday.
Asian currencies were mostly low and worries were reduced as concerns on the US tariff.
US President Donald Trump banned Chinese investments in strategic fields and said Canada and Mexico Tariffs would begin next week.
Investors were largely expected that Trump had threatened the conversation after the first agreed to stay on tariffs for 30 days.
Foreign investors have so far sold Indian shares worth about $ 3 billion in February.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities:
“Rupee does a very weak business at 87.11, below 0.505RS, because FII continued and crude oil prices rose between American tariffs on Iran, which pushed the oil demand more. The dollar index at 106.65 $ Also added.
With continuous capital outflow and rising raw prices, the rupee can remain weak. The support is seen near 87.45, while the resistance remains at 86.85. The market focuses on global risk emotion, oil value trends and central bank policy indications. ,
This copy is being updated
