The Indian rupee fell to a three-week low on Wednesday as international investors continued to flee riskier assets ahead of US inflation data, which will decide the pace of tightening in the world’s biggest economy.

The partly convertible rupee was trading at 79.66/67 per dollar, down from 79.5975 at the previous closing. The unit hit a lifetime low of 79.6675.

“There is a general risk-off sentiment. Until flows come back, we will see the dollar being bid against currencies like ours,” a senior trader at a private bank said to Reuters.

Asian currencies have been under intense pressure in recent months, with predictions that the US Federal Reserve would raise interest rates quicker and more aggressively than its counterparts adding considerably to the safe haven dollar’s rise.

Source: Reuters

LEAVE A REPLY

Please enter your comment!
Please enter your name here