Indian rupee drops alongside most Asian peers

Foreign investors have turned net sellers of Indian equities over the last two days

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Photo: Reuters

By Reuters

Published: Fri 4 Aug 2023, 10:32 AM

The Indian rupee declined on Friday, tracking losses on most Asian peers on the back of a further rise in long maturity US yields after Fitch cut the US government's credit rating.

The rupee was at 22.55 against the dollar by 9.44am UAE time, down from 22.53 on Thursday.

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US non-farm payrolls report is due later on Friday, helping investors assess whether the country's labour market remains resilient. Apart from inflation, the US labour market is considered the most important variable on whether the US Federal Reserve will raise rates again.

Economists polled by Reuters expect 200,000 job additions and month-on-month average wage growth of 0.3 per cent.

A forex trader at a state run bank reiterated expectations of a quiet day, with 82.80 unlikely to be taken out on USD/INR. He said he is tracking Indian equities, apart for U.S. yields, for further cues on the rupee.

The equity benchmark BSE Sensex was up slightly, having dropped to a one-month low on Thursday on risk aversion fuelled by the rise in U.S. yields.

Foreign investors have turned net sellers of Indian equities over the last two days. They sold shares worth $182 million $38.3 million on Wednesday and Thursday respectively. The number for Thursday is provisional.

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Reuters

Published: Fri 4 Aug 2023, 10:32 AM

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