MUMBAI: The Indian rupee inched down on Thursday to a nearly eight-week low on the back of higher U.S. bond yields and a firmer dollar as risk sentiment improved on hopes of an imminent debt ceiling deal.
The rupee was down at 82.4750 against the U.S. dollar, compared to its previous close of 82.38. It hit its lowest since March 24 at 82.4825.
“The recent breakout of the U.S. dollar is giving a directional move in USD/INR and oil has also swung back, which is adding some pressure to the rupee,” said Anand James, chief market strategist at Geojit Financial Services.
“Rupee is moving to a consolidation zone after the recent weakness,” James added.
Meanwhile, U.S. Treasury yields rose overnight and the dollar index surged to an over seven-week high in the wake of positive signs on the debt ceiling negotiations and upbeat housing data.
April housing starts data showed a surprise increase of 2.2% month-on-month.
“At 1.40 million, the annualised level of housing starts is in the centre of its 1.34–1.4 million range for the past seven months, implying a high degree of resilience in the construction sector,” analysts at ANZ wrote in a note to clients.
Asian shares tracked their U.S. peers higher, while currencies were mixed.
The offshore yuan depreciated further on Thursday to 7.0286 against the dollar, weighed by the weak economic data seen this week.
The rupee was down at 82.4750 against the U.S. dollar, compared to its previous close of 82.38. It hit its lowest since March 24 at 82.4825.
“The recent breakout of the U.S. dollar is giving a directional move in USD/INR and oil has also swung back, which is adding some pressure to the rupee,” said Anand James, chief market strategist at Geojit Financial Services.
“Rupee is moving to a consolidation zone after the recent weakness,” James added.
Meanwhile, U.S. Treasury yields rose overnight and the dollar index surged to an over seven-week high in the wake of positive signs on the debt ceiling negotiations and upbeat housing data.
April housing starts data showed a surprise increase of 2.2% month-on-month.
“At 1.40 million, the annualised level of housing starts is in the centre of its 1.34–1.4 million range for the past seven months, implying a high degree of resilience in the construction sector,” analysts at ANZ wrote in a note to clients.
Asian shares tracked their U.S. peers higher, while currencies were mixed.
The offshore yuan depreciated further on Thursday to 7.0286 against the dollar, weighed by the weak economic data seen this week.
