INR Stays Pressured On Dollar Rebound

Published on Nov 07, 2023 17:09

The Indian rupee stayed under pressure all through the day amid dollar rebound overseas and settled lower by 5 paise at 83.26 (provisional) against the US dollar in a range-bound trade on Tuesday. The dollar index that measures the greenback against a basket of currencies added strength in the dollar on the back of renewed gains in the US benchmark treasury yields to 4.6% after hawkish comments reported from Minneapolis Federal chief Neel Kashkari indicating he is still leaning toward raising interest rates again to bring inflation down to the central bank`s 2% target, added pressure on the pair. The dollar index bounced back above 105 mark and is currently quoting at 105.50, up 0.42% on the day. Besides a strong American currency overseas, sustained foreign fund outflows too weighed on the local unit. Meanwhile, negative cues from local equities too failed to support the domestic currency. Indian shares recouped early losses to finish marginally lower on Tuesday after three days of gains.