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Indian rupee stays near two-month lows as Fed tightening bets rise
The dollar index was up 0.13% near 99.80, helping keep selling pressure on the rupee ahead of key US jobs data.
The Indian rupee (INR) traded around 94.90 to the US dollar on Wednesday, staying close to a two-month low of 94.80 set the previous day, FXStreet reported.
The rupee faced expected selling pressure as the US dollar strengthened on growing expectations that the Federal Reserve will tighten policy at its meeting this month. FXStreet also pointed to rising inflation projections tied to surging oil prices and renewed concerns around disruptions to global energy supplies.
FXStreet cited Kpler data, via Al Jazeera, showing only five vessels passed through the Strait of Hormuz, far below the roughly 14-vessel 10-day average, as attacks between the US and Iran prompted sailors to avoid the route.
With markets focused on US labor data, FXStreet said investors were also watching ADP Employment Change for August and expected official nonfarm payrolls later this week to influence Fed rate expectations.