The rupee declined marginally against the dollar, in
step with losses in peer Asian currencies, on October 23.
The home currency was trading at 83.17 a dollar, down
0.05 per cent from its previous close of 83.12, at 9.10 am.
The US dollar strengthened, and US Treasury yields
rebounded on expectations of strong US economic data this week, including
manufacturing PMI, third-quarter GDP, and the US Federal Reserve’s preferred
inflation gauge.
Some concerns eased about the mounting Middle East
tension involving major powers. Over the weekend, the Hamas released two US
hostages, aid started reaching Gaza through Egypt’s border, but Israel
increased air raids in preparation for the next phase of its clash with the
Hamas.
Federal Reserve Bank of Cleveland President Loretta
Mester indicated that the US central bank is nearing the end of its tightening
campaign if the economy follows expectations.
Chair Jerome Powell’s upcoming remarks will be closely
monitored for signals about potential interest rate increases.
Asian currencies weakened. Indonesian rupiah lost 0.45
per cent, Thai Baht fell 0.32 per cent, Malaysian ringgit 0.27 per cent, South
Korean won 0.1 per cent. The Japanese yen and Singapore dollar fell 0.04 per cent
each.
The dollar index, which measures the US currency’s
strength against major currencies, was trading at 106.299, up 0.13 per cent
from its previous close of 106.163.
Agencies
