The Indian rupee reached its lowest value since three weeks ago because of dollar strength and worldwide market anxiety but exporter payments and foreign investment helped reduce its decline.
The currency ended its trading day at 86.0750 per U.S. dollar after starting at 85.94 in the previous session. The rupee lost its earlier support at the 86 level during the last part of trading before reaching 86.09 before recovering some of its value.
Asian currencies declined in value because the dollar index rose 0.4% to 98.7 while investors remained uncertain about President Trump’s comments regarding Fed Chair Powell. The index experienced fluctuations because of conflicting reports about Powell’s future.
The rupee received protection from dollar selling activities performed by exporters and foreign banks who managed custodial client accounts. ING observed that market participants have developed stronger resistance to Trump’s unpredictable statements because sentiment shifts rapidly.
The BSE Sensex together with the Nifty 50 experienced a 0.4% decline in their market value. The market expects U.S. retail data and Fed official comments to provide additional guidance about policy direction.
