Rupee tumbles as Fed rate-hike bets, equity jitters weigh
The Indian rupee fell to a one-month low on Monday, as a better-than-expected U.S. jobs report prompted investors to bet on more Federal Reserve rate increases, with weaker domestic equities also weighing on market sentiment.
The rupee traded at 82.45 per dollar by 10:10 a.m. IST, down from its previous close of 81.8275.
Trading was volatile last week and the currency traded on the weaker side of 82 for most part, weighed down by losses in equities as foreign investors dumped Indian stocks amid a rout in Adani Group shares.
Adani Group stocks fell again on Monday as credit warnings trickled in, sending jitters through markets.
“The bullish movement in the dollar index and foreign portfolio outflows could pressurise the rupee,” said Amit Pabari, managing director at CR Forex.
“Friday’s U.S. data… has increased the chances of another quarter bps hike from the Fed and pushed the terminal rate higher, which is not a good sign for other currencies.”
This report’s information was first seen on Zawya.com; to read more, click this link.