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Indian Rupee Holds Near Lifetime Low Following US Inflation Data

Indian Rupee Slips 20 Paise Against US Dollar Amid Global Market Trends

The Indian rupee is expected to remain near its lifetime low, with the currency trading at 83.24 against the US dollar (22.68 against the dirham) on Friday. This level is just a fraction of its record low of 83.29 (22.69).

The Indian rupee’s stability near its lifetime low is a response to US inflation data, which has reinforced expectations of the Federal Reserve maintaining higher interest rates for an extended period.

Foreign Fund Outflows and Negative Equity Markets:

The currency is under continued pressure due to ongoing foreign fund outflows, exacerbated by the negative performance of equity markets across Asia.

Asian currencies have declined, with losses ranging from 0.3% to 0.8%, primarily influenced by the rise in US Treasury yields.

Intervention by the Reserve Bank of India (RBI):

The Reserve Bank of India (RBI) has vigorously intervened to prevent the rupee from reaching a record low. Market expectations of RBI selling dollars remain deep-rooted as the central bank seeks to stabilize the currency.

Market Watch for RBI Pre-Open US Dollar Sales:

Market participants will closely monitor any pre-open US dollar sales by the RBI in the non-deliverable forward market.

The Indian rupee’s trading dynamics are influenced by various economic factors and global developments, making it a key focus for forex analysts and market participants.

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