iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Rupee is expected to weaken as US debt uncertainty raises the dollar

24 May 2023 , 09:51 AM

The ongoing standoff over the U.S. debt ceiling has dampened risk appetite and increased demand for safe-haven assets like the dollar, which is projected to cause the Indian rupee to weaken on Wednesday.

The rupee is expected to open at approximately 82.85-82.87 to the US dollar, down from 82.80 in the previous session, according to non-deliverable forwards.

Concerns over the US debt ceiling led to the greatest decrease in the S&P 500 Index in three weeks, which in turn led to a decline in Asian currencies and stocks. Near 103.50, the dollar index was trading.

Representatives of U.S. President Joe Biden and congressional Republicans failed to reach an agreement during another round of debt ceiling talks on Tuesday with the deadline to raise the borrowing limit approaching.

During American trade hours, the Federal Reserve’s May meeting minutes are due. The minutes come amid discussion about whether the U.S. central bank would hike rates once more in June or decide to take a break.

Economic indicators from the United States have shown a robust economy, and Fed members have been generally hawkish, increasing the likelihood of a rate hike in June to close to 30%.

Data released on Tuesday showed how strong the American services industry is. S&P Global’s flash U.S. Services PMI Index increased to 55.1 on Tuesday, the highest level since April of last year, according to a survey.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • Dollar
  • rupee
  • US Debt
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.