Rupee Falls 20 Paise To 81.63 As Dollar Recovers Sharply Ahead Of US Inflation Data

Rupee falls as the dollar regains groundThe rupee weakened on Thursday, pulling back from sharp gains in the previous session when it hit a one-month high as the dollar recovered its footing ahead of important US inflation data set to be released later in the day.Bloomberg showed the rupee fell to 81.6275 per dollar from Wednesday’s close of 81.4337 and PTI reported that the domestic currency fell 17 paise to 81.64 against the US dollar in early trade.The greenback surged overnight against its peers and held to those gains in early Asia trade.”The late rally on the dollar yesterday has slightly deflated the rupee’s upside momentum,” a dealer at a Mumbai-based bank told Reuters.A decent recovery in the dollar index would also work against the rupee, the dealer said.The euro traded just above parity at $1.0016, some distance off its almost two-month high earlier in the week. Sterling last traded at $1.1360, down 1.6 per cent from the previous day.Investors are now focused on the eagerly anticipated US inflation numbers that are scheduled to be released later on Thursday. A significant increase in prices would certainly support the Federal Reserve’s relentless push to tighten monetary policy.”Up until yesterday…the market looked as though it was going to be positioned for a lower-than-expected data, which I thought was pretty dangerous, given that five of the last six months have produced upside surprises,” Ray Attrill, Head of FX Strategy at National Australia Bank (NAB), told Reuters.”I think that there’s every chance we’ll see a more extended correction in risk assets if we did see an upside surprise, because the market would be forced to price the Fed either higher, or higher for longer.”The aftermath from the crypto market also helped the dollar gain ground as risk sentiment deteriorated and US stocks fell overnight due to data showing that Republican gains in the midterm elections were less pronounced than some had anticipated.Featured Video Of The DayTech Stocks Fall After Q3 Results; Meta, Amazon Lose Big



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