Rupee Weakens as Asian Currencies Waver Amid Fed's Caution on Rate Cuts

19 Dec 2023 , 11:17 AM

Rupee opened slightly weaker against the dollar at 83.10, down 0.05% from the previous close of 83.06.

Asian currencies faced weakness amid uncertainty about the Federal Reserve’s monetary policy, with officials downplaying expectations of rate cuts in the early part of the following year.

Federal Reserve Bank of Chicago President Austan Goolsbee, among others, tempered optimism on rate cuts, indicating that easing expectations for next year hinge on the central bank’s control of inflation.

Declines observed in Asian currencies: South Korean won (0.55%), Japanese yen (0.47%), China renminbi (0.15%), Taiwan dollar, and Philippine peso (0.09% each).

Among gainers, the Malaysian ringgit rose by 0.22%, and the Indonesian rupiah increased by 0.12%.

The dollar index, gauging US currency strength against major currencies, traded at 102.551, down 0.02% from the previous close of 102.561.

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