Forex
Rupee Weakens as Dollar Gains from Fed Hike Expectations
The Indian rupee weakened on Wednesday, influenced by the decline of Asian peers and expectations of further US Federal Reserve rate hikes that boosted the dollar.
The rupee fell 0.1% to 95.74 per dollar from its previous close of 95.59 in the previous session.
Currency analysts at ANZ noted that the US Federal Reserve has initiated a rate-hiking cycle, and markets are pricing in further tightening.
They warned that if the Reserve Bank of India does not respond with interest rate adjustments, India's monetary policy would become increasingly misaligned with global financial conditions, making the rupee more vulnerable to any potential risk-off episode.