The Indian rupee finished 19 paise lower at 77.42 per dollar on Thursday compared to Wednesday’s close of 77.23 According to Emkay Global Financial Services’ forex desk, the rupee continued to depreciate against the US dollar and hit levels of 77, 63 today after the dollar rose to hit multi-year highs of $104.43 after US inflation data. Although inflation took a slight breather last month, the CPI data came in at 8.30 % lower than the previous number of 8.50% registered in March.
“In April alone, prices rose 0.30%, less than the 1.20% jump seen in March. Excluding food and energy prices, core inflation rose 0.60%. The president of US President Joe Biden said inflation remains “unacceptably high” and remains confident the US Federal Reserve will do its job on inflation A Fed member speaking after the data Inflation said it would support sliding rates if inflation persists while backing 50 bps rate hikes at upcoming meetings until rates reach neutral Hawkish comments from Fed members approaching their meeting June will trigger a further rise in the US dollar.Global market sentiment has already been hit by lockdowns in China, which are hurting growth, and the protracted war in Ukraine.Meanwhile, in domestic markets, His reports suggested that the RBI may take the repo rate to 5.15% in August alone, adding that the central bank is unlikely to take short-term measures like OMO at this time. any major rupee appreciation will be seen only below 77 levels. The coin may hit 78/78.25 levels until then,” the Emkay Global desk said.
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Story first published: Thursday, May 12, 2022, 4:07 PM [IST]