Rupee weakens alongside Asian peers; ends the week lower
rupee weakened against the U.S. dollar on Friday, alongside its Asian peers, with the Chinese yuan depreciating to a one-month low. The rupee closed at 82.8450 against the dollar, 0.16% lower on the day and 0.12% lower for the week.
The Korean won weakened by 0.75% on the day, the most among Asian currencies. Both the Reserve Bank of India's monetary policy decision and U.S. inflation print were along expected lines on Thursday, doing little for the rupee.
«It was kind of a non-event for foreign exchange markets as the RBI's hawkish stance had no major impact on yields,» said Abhilash Koikkara, head of forex and commodities at Nuvama Professional Clients Group. Traders are avoiding large positions on the rupee heading into a truncated trading week, a foreign exchange trader at a private bank said. India's debt and foreign exchange markets are closed next Tuesday and Wednesday.
«Our bias is slightly on the upside for the USD/INR while looking to buy on the dips,» said Gaurang Somaiya, FX and rates researcher at Motilal Oswal Financial Services. Somaiya expects the rupee to trade in a range of 82.60 to 83.05 next week. The key for the rupee next week, said Mandar Pitale, head of treasury at SBM Bank India, will be changes in crude oil prices and foreign equity flows.
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