Rupee dips 11 paise to 82.87 as dollar gains on Fed rate hike

Rupee today: Local currency falls against US dollar

The rupee fell against the dollar on Friday as strong U.S. economic growth data raised the prospect of a longer-than-expected rate hike, prompting a sharp sell-off in risk assets.

The rupee opened at 82.7975 against the dollar, compared with Thursday’s close of 82.7625 and was last at 82.8650, according to Bloomberg.

According to PTI, the domestic currency was down 7 paise against the dollar, tentatively at 82.86.

“With domestic equities falling, contrary to Asia’s gains and Europe and Dow futures flat, USD/Rupee bids are good. But USD/INR can’t break above 82.90 as RBI ensures it won’t exceed it It has been protected for a long time,” said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.

The dollar took the lead on Friday after solid economic data reinforced the need for the Federal Reserve to maintain its aggressive monetary policy tightening path.

Data on Thursday showed that the number of Americans filing new claims for jobless benefits rose less than expected last week, suggesting the labor market remains tight.

The U.S. economy expanded faster than expected in the third quarter after contracting in the first half of the year, according to a separate report.

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