Rupee drops 45 paise to 81.26 as Fed warning boosts battered Dollar

The rupee falls sharply to break through the 81 mark against the dollar

The rupee reversed early-session gains to fall sharply on Monday, as a warning from a Federal Reserve official that it would take a series of weak inflation reports to drive the bank away from the Rate hikes supported the battered dollar.

Bloomberg last quoted the rupee at 81.26 to the dollar after opening at 80.5350, down from 80.81 at Friday’s close.

PTI said the rupee fell 48 paise to provisionally close at 81.26 against the US dollar.

The national currency traded in the 80.5125-81.2838 range, with the rupiah pushed back past the 81 mark, stalling last week’s rally.

“The rupiah opened at 80.51, which was the highest seen for the day as oil companies, defense firms and MSCI exits kept the dollar well bid,” said Anil Kumar Bhansali, chief executive. treasury at Finrex Treasury Advisors.

“There are about 15 speakers from the Fed this week and all your hawkishness from them could change the downward direction of the dollar,” he added.

A cooling inflation report on Thursday sent the dollar down almost 4% for the week, its fourth biggest drop since the era of floating exchange rates began more than 50 years ago.

However, Federal Reserve Governor Christopher Waller said on Sunday that markets were well ahead of themselves after just one print of inflation.

This helped to limit the sharp fall in the dollar.

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