Market News
Rupee gains along with Asian peers as US fiscal concerns drag dollar - REUTERS
MUMBAI, May 23 (Reuters) - The Indian rupee gained on Friday as the dollar slipped on concerns about the U.S. fiscal outlook, with markets digesting the potential impact of President Donald Trump’s tax-cut bill, which is projected to add to the U.S. debt pile.
Emerging market currencies rose across the board, with Asian currencies up between 0.1% to 0.7%.
The rupee rose 0.2% to 85.83 as of 10:25 a.m. IST on Friday, recovering after slipping past the 86/dollar level for the first time in over a month on Thursday.
The South Asian currency has broadly underperformed its emerging market peers so far in May, with traders citing persistent dollar demand from corporate payments and foreign portfolio outflows.
Foreign portfolio investors sold Indian shares worth about $586 million on Thursday, as per provisional data, the third such session of selling in four days. Overseas investors were also net sellers of index-linked Indian bonds on Thursday.
