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Rupee Slips to 90.11 Per Dollar in Early Trade on Importer Demand, Risk-Off Tone

Importer dollar demand drove early weakness in a session colored by recent foreign outflows.

Overview

  • At the interbank market, the rupee opened at 89.95 and fell to 90.11 versus a previous close of 89.87.
  • Forex traders pointed to elevated dollar buying by importers and a cautious tone as reasons for a near-term negative bias.
  • Foreign Institutional Investors were net sellers of equities worth Rs 1,651.06 crore on Wednesday, adding pressure on the currency.
  • USIndia trade talks began as USTR Jamieson Greer said Washington received its best offers from India, while noting Indian resistance on some row crops and meat products.
  • The dollar index eased after a Fed rate cut, Brent ticked higher, and domestic equities inched up, offering mixed cues for the rupee.