Posted by MUMBAI, Feb 19 (www.GoldTradingCalls.com) Indian rupee trend continued its weak run in the recent past and weakened on Thursday as the dollar climbed overseas, triggering demand for the USD unit from importers. Lower domestic shares also affected sentiment.
The Indian rupee ended at INR 46.27 against the USD, 16 paisa lower than Wednesday’s close.
The US dollar’s rise spooked importers, who began buying USD to cover their requirements. The Indian rupee should trade in a INR 46.15-46.35 range on Friday.
The US dollar was close to a seven-month high against a currency basket after the Federal Reserve’s minutes showed several policymakers had discussed strategies for withdrawing monetary stimulus.
The International Monetary Fund plans to sell more gold in the market, pushing down bullion prices and commodity-linked currencies.
The USD held on to its gains after Wednesday’s stronger US economic data, while fiscal concerns in the euro zone countries continued to drag on the euro.
The USD index, the currency’s gauge against six majors was up about 0.3% by late evening. The euro has fallen almost 5% against the USD since the start of the year on concerns about the fiscal health of Greece and other euro zone countries. This has weighed on emerging market currencies.
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