By Sethuraman N R
MUMBAI, May 9 (Reuters) - The Indian rupee fell to a
more than two-week low on Tuesday on the back of dollar
purchases by importers and short covering by traders, with a
rise in U.S. yields also adding to the pressure.
The rupee ended at 82.0375 per U.S. dollar, compared with
its close of 81.7950 in the previous session.
The demand for dollars might be due to purchases by
importers, said Anand James, chief market strategist at Geojit
Financial Services.
An uptick in the USD/INR was brewing, with the 81.6 support
level having held firm for the last two weeks, James said.
A possible covering of dollar short positions in the wake of
the Reserve Bank of India's intervention may be another reason
for the dollar's surge, traders said.
The dollar index inched up as traders awaited clarity on
U.S. debt ceiling talks and new inflation data for a clearer
picture of the economic outlook and the Federal Reserve's likely
rate-hiking path.
Other Asian currencies edged lower as Treasury yields rose
ahead of U.S. inflation data on Wednesday. The data is critical
after the Federal Reserve, last week, signalled a pause in rate
hikes.
India's inflation data, due later in the week, will provide
cues on the RBI's next rate hike moves.
(Reporting by Nallur Sethuraman in Mumbai; Editing by Savio
D'Souza)
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))
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