Due to a decline in its Asian counterparts and a generally negative outlook on risk, the Indian rupee saw a small weakening on Thursday.
As of 10:25 a.m., the rupee was worth 83.3050 (Dh22.69) against the US dollar, down 0.04% from its close of 83.2750 earlier in the day.
The dollar index saw a minor increase to 102.45 and has now gained 1% in January. This comes after the index had monthly drops in both November and December.
A moderating of wagers on prospective rate reductions in the United States has aided in the dollar’s comeback. According to CME’s FedWatch Tool, investors are now pricing in a 27% possibility that the Federal Reserve will keep rates unchanged at its meeting in March, up from less than 10% a week ago.
The Fed’s December policy meeting minutes indicated that officials were satisfied with the way inflation was being controlled, but they did not provide any information about when the cuts may actually start.
In the meanwhile, traders believe that given the central bank’s active involvement in the currency market, the rupee is unlikely to depart from its current restricted range.
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