Rupee Falls 11 Paise To 82.87 As Dollar Rises On Fed Rate Hike View
The rupee lost ground to a resurgent dollar on Friday driven by a sharp sell-off in risky assets caused by the increased chance that interest rates will rise for longer than anticipated in the wake of solid US economic growth figures.
Bloomberg showed, the rupee was last changing hands at 82.8650 per dollar, after opening at 82.7975 per dollar, compared to its previous close of 82.7625 on Thursday.
According to PTI, the domestic currency fell 7 paise to provisionally close at 82.86 against the US dollar.
“As domestic stocks fell, contrary to the rise in Asia and flat trading in Europe and Dow futures, the dollar was well bid against the rupee. But the USD/INR could not cross 82.90 as the RBI ensured it did not go beyond this level which it has protected for a long time now,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
The dollar was on the front foot on Friday after solid economic data reinforced the need for the Federal Reserve to stay on its aggressive monetary policy tightening path.
The number of Americans filing new claims for unemployment benefits climbed less than anticipated last week, according to data released on Thursday, showing that the labour market is still tight.
According to a different report, the US economy expanded in the third quarter at a faster rate than expected after contracting in the first half of the year.
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