MUMBAI, Sept 30 (Reuters) – The Indian rupee fell on Monday, weighed down by dollar demand from foreign banks, but rose in most Asian countries as China’s stimulus measures over the weekend boosted risk sentiment. did.
The rupee was down 0.1% on the day to 83.7850 rupees against the US dollar as of 10:50 a.m. Eastern time.
Strong dollar bidding by London- and New York-based banks weighed on the rupee in early trade, a trader at a state-run bank said, adding that the rupee’s intraday decline should be limited to $83.85. .
Although the dollar index was slightly weaker at 100.4, most Asian currencies rose, led by the Malaysian ringgit and Thai baht, which both rose 0.5%.
The rupee is on track to post its first monthly gain since June, but continues to lag regional peers, which have appreciated between 0.3% and 5.4% this month.
Amit Pavali, Managing Director, FX It’s caused by management.” This was revealed by advisory firm CR Forex.
The rupee hit a three-month high of 83.4350 rupees earlier this month, but has since pared its gains.
Meanwhile, the dollar-rupee forward premium rose slightly, and the one-year implied yield rose 1 basis point to 2.40%, near its highest level since May 2023.
Today’s focus will be on remarks from Federal Reserve Chairman Jerome Powell that may provide insight into the future direction of US policy rates.
Interest rate futures are currently pricing in a 75 basis point (bp) cut in 2024, making the odds of a 50 or 25 basis point cut in November about even.
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Report by Jaspreet Kalra. Editing: Nivedita Bhattacharjee
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