Market News
Rupee falls to near 87 per dollar as trade uncertainty, outflows persist - REUTERS
MUMBAI, July 29 (Reuters) - The Indian rupee remained under pressure on Tuesday, as dollar demand from importers and weakness in foreign portfolio flows continued to drag it towards the 87 to the U.S. dollar mark, its weakest level since March. The rupee hit a four-month low of 86.9150 against the U.S. dollar before closing at 86.8150, down 0.2% on the day.
Over the last 15 sessions, the rupee has closed stronger only twice. Traders and FX sales executives attribute the weakness to uncertainty over U.S.-India trade negotiations, weak portfolio flows and dollar demand from importers.
While exporters were active near 86.50 last week, the next bout of dollar-selling interest is likely around 87-87.10 levels, a salesperson at a large foreign bank said.
The risk of the rupee coming under further pressure will be among the considerations for the Reserve Bank of India at its upcoming policy review next week, economists at BofA Global Research said in a note.
