The rupee weakened marginally against the US dollar tracking a fall in the Asian currencies market. The home currency ended at 82.12 a dollar, down 0.21 percent from its previous close of 81.94.
"Well, as the FIIs and FDI inflows kept pouring which so far have played a key role in strengthening the rupee, the downward pressure due to global fundamentals would remain limited. However, the tug between the two major factors, RBI intervention, and inflows, will drive the USD/INR pair. For now, there is a thin probability of the pair breaking the 81.80 support zone and a high chance that it would move towards 82.20-82.30 levels in the coming sessions," said CR Forex in its recent note.
Traders are now eying the Bank of England's next base rate decision on June 22. The prevailing market sentiment suggests a rate increase in the upcoming meeting, with projections varying among economists and institutions, ranging from 5-6 percent for future hikes, a Reuters report said.
US Federal Reserve Chair Jerome Powell is scheduled to deliver his testimony on June 21 and 22. Traders are pricing in a nearly 75 percent chance of a 25 basis points rate hike by the Fed at its July meeting, after a pause in June.
Asian currencies were trading weaker as the Bank of China cut its key one-year and five-year loan prime rate to support the economy. Taiwan dollar declined 0.28 percent, China Offshore lost 0.25 percent, Hong Kong dollar and Indonesian rupiah fell 0.1 percent each. Among gainers, the Philippines peso rose 0.34 percent, Japanese yen rose 0.26 percent and Thai baht gained 0.12 percent.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 102.471, down 0.05% from its previous close of 102.52.
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