Updated April 4th, 2024 at 10:46 IST

Rupee hovers just shy of record low; Dollar sales by foreign banks provide support

As of 10:15 am, the currency, trading at 83.4375 against the US Dollar, showed minimal movement from its previous session's close at 83.4350.

Reported by: Business Desk
Rupee versus Dollar | Image:Unsplash
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Rupee versus Dollar: The Indian Rupee remained largely unchanged on Thursday, but continued to hover near its record low, as Dollar sales from foreign banks and a slight uptick in Asian currencies helped to limit its decline.

As of 10:15 am, the currency, trading at 83.4375 against the US Dollar, showed minimal movement from its previous session's close at 83.4350. The Rupee had slipped to an all-time low of 83.45 just last week.

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According to a foreign exchange trader at a state-run bank, foreign banks were observed offering Dollars in early trading, which provided some relief to the Rupee by alleviating the downward pressure.

However, Apurva Swarup, Vice President at Shinhan Bank India, expressed expectations of a gradual depreciation of the Rupee in the near term.

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The Dollar index stood at 104.2 after a 0.5 per cent decline on Wednesday, following Federal Reserve Chair Jerome Powell's reaffirmation of his baseline outlook that rates would decrease "later this year."

Despite an initial rise, US bond yields slipped after US private payrolls for March exceeded expectations. The 10-year US Treasury yield reached a peak of 4.42 per cent on Wednesday, its highest level since late November, before settling at 4.36 per cent.

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Atlanta Fed President Raphael Bostic suggested that rate reductions should likely be deferred until the fourth quarter of 2024, anticipating only one quarter-percentage-point cut over the year.

Expectations of a June rate cut by the Fed remained relatively unchanged, slightly above 60 per cent, following these remarks.

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Most Asian currencies experienced slight gains, with the Malaysian ringgit leading the pack with a 0.3 per cent increase.

Investor focus now shifts to US jobless claims data and comments from a variety of Fed officials scheduled to speak later on Thursday.

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(With Reuters inputs.)

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Published April 4th, 2024 at 10:46 IST