By Anushka Trivedi
MUMBAI, April 21 (Reuters) - The Indian rupee ended
marginally higher against the U.S. dollar on Friday amid tepid
risk appetite, but snapped a four-week winning streak, as rising
bets of a U.S. Federal Reserve rate hike boosted the dollar.
The rupee finished at 82.09 per U.S. dollar
compared with 82.1475 in the previous session. For the week, it
lost 0.30%, falling for the first time since the week ended
March 17.
The dollar index is set for its biggest weekly gain
since February on expectations the Fed would hike rates by 25
basis points next month, following mixed inflation and retail
sales data. Over the week, several Fed officials have added to those
views by pointing out that inflation remains uncomfortably high
and rates must keep rising.
The dollar also benefited from risk aversion in the market,
as data overnight fuelled worries over U.S. economic growth.
Treasury yields cooled, with the 10-year bond yield down 10 bps
from this week's peak to 3.5337%.
The number of Americans filing new unemployment benefits
claims increased moderately last week, and a report by the
Philadelphia Federal Reserve showed that manufacturing activity
in the mid-Atlantic unexpectedly contracted in April.
"Lower U.S. yields have not dampened demand for the dollar,
which is being supported by a risk-off environment," said
Anindya Banerjee, head of research - FX and interest rates at
Kotak Securities.
The rupee has not exhibited the expected weakness following
a breakout near 82.15, but the bias and drift remains towards
further decline as long as it trades above 81.83, he said.
The rupee would likely find support near 82.30 and 82.50
levels, he added.
In the broader markets, Asian currencies and stocks
declined, although India's benchmark Nifty 50 index fell
less than its peers.
Markets now await U.S. April manufacturing activity data,
due later in the day.
(Reporting by Anushka Trivedi; Editing by Varun H K)
anushka.trivedi.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.