But since the meeting, there has been a series of inflation and economic data that surprised the market and led to a repricing of a higher Fed terminal rate. Markets are now expecting at least two more rate hikes, with a growing possibility of a third one and the rate topping out around 5.362% in July. This has turned investors bearish on all Asian emerging market currencies, with short bets on the rupee hitting a three-month high, a fortnightly Reuters positioning poll showed. (Reporting by Anushka Trivedi; Editing by Sohini Goswami)
anushka.trivedi.thomsonreuters.com@reuters.net)) By Anushka Trivedi
MUMBAI, Feb 23 (Reuters) - The Indian rupee rose against
the dollar on Thursday, as Asian currencies made some headway
following losses fuelled by worries over rising U.S. yields.
The rupee finished at 82.7325 per dollar, compared
with 82.85 in the previous session, which was its weakest
closing level so far this month.
The currency has traded in an about 30 paisa range for the
past 10 days even as other Asian currencies marked deep losses.
Traders reckon the Reserve Bank of India's (RBI) presence helped
the rupee outperform its peers.
"A convincing breach of the 82.50 level would indicate if
we're out of the narrow trading range," said Sajal Gupta, head
of forex and rates at Edelweiss Securities.
"Forex reserves are not a big concern at this point. So on
the upside (in the USD/INR), we think the RBI could keep
protecting the 83-level."
The South Korean won and the Philippine peso firmed about 0.3% on Thursday after the dollar index dipped and U.S. bond yields fell as the minutes of the
Federal Reserve's Jan. 31-Feb. 1 meeting were considered
"outdated."
The Fed raised rates by 25 basis points (bps) at that
meeting and the minutes noted that almost all participants
preferred that to a 50 bps hike.
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