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Anticipation of Fed policy direction pushes Indian rupee lower

by Elena

The Indian rupee fell to 83.2575 against the dollar on Tuesday, mirroring movements in other Asian currencies. All eyes are on the upcoming speeches by Federal Reserve policymakers this week for clues on the future direction of monetary policy. The rupee’s trading range was limited between 83 and 83.30 due to continued intervention by the Reserve Bank of India (RBI).

Asian currencies retreated between 0.1% and 0.9%, following a rally in the Dollar Index, which rose to 105.57 after hitting a one-month low on Monday. The rally was in response to the Fed‘s decision last week to keep interest rates on hold and maintain a dovish stance.

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