Indian Rupee: Weakens Ahead Of Key Macros

Indian Rupee: Weakens Ahead Of Key Macros

Dec 12, 2017 04:12 IST capital market

The Indian rupee slipped lower at commencement against the dollar on Tuesday, 12 December 2017 ahead of key macroeconomic data set for release later in the day amid foreign capital outflows. Increased demand for the American currency from importers further weighed on the rupee, but the dollars reduced clout against other currencies overseas limited the losses.

The domestic currency opened at Rs 64.42 against the dollar and dropped to a low of 64.52 so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.49. Yesterday, the rupee had gained 8 paise to end at a fresh one-week high of 64.37 a dollar on persistent selling of the US currency ahead of release of industrial production and retail inflation data.

Domestic benchmark indices witnessed a divergent trend in early trade. At 9:16 IST, the barometer index, the S&P BSE Sensex fell 44.69 points or 0.13% at 33,411.10. The Nifty 50 index rose 2.65 points or 0.03% at 10,324.90.

Overseas, Asian stocks edged higher following a strong lead from Wall Street overnight. US equities closed higher yesterday, 11 December 2017, reversing earlier weakness following a terror incident near New York Citys Times Square. The Dow Jones Industrial Average and the S&P 500 notched record closing highs.

The US Federal Reserves Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates later in global day today, 12 December 2017. The US Federal Reserve will announce its interest rate decision tomorrow, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Meanwhile, the dollar held steady near a recent two-week high versus a basket of major currencies on Tuesday, with traders awaiting the U.S. Federal Reserves policy meeting this week for fresh catalysts. The dollar index, which tracks the greenback against a basket of six major peers, last stood at 93.922 (DXY). That was within sight of Fridays peak of 94.087, the highest for the dollar index since Nov. 21.

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