off-the-wire

INDIA RUPEE-Rupee dips, but recent decline likely to run out of steam

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Nimesh Vora MUMBAI, May 12 (Reuters) - The Indian rupee was down slightly on Friday on weak risk appetite, but traders reckoned that it was not likely to see more losses from current levels. The rupee was at 82.1350 per U.S. dollar by 10:35 a.m. IST compared with 82.09 in the previous session. The local currency had fallen to 82.1425 in opening trades. It looks like there is "adequate" selling interest when the USD/INR pair is taken above 82 on account of the dollar's overall moves, a trader at a private bank said. "And with resistance expected through 82.20 to 82.30, it is difficult to see it (USD/INR) much higher from here." Anil Bhansali, head treasury at Finrex Treasury Advisors, advised exporters to take advantage of the current move and sell dollars on upticks.


Asian currencies struggled in the wake of losses on most equity gauges. Renewed concerns over U.S. regional banks impacted risk taking and lifted demand for the safe haven dollar.


Shares of a U.S. regional lender, PacWest Bancorp, plunged after it said its deposits fell 9.5% last week and that it had posted more collateral to the Fed to boost liquidity. The dollar index on Thursday rose the most in two months. The S&P 500 Index dropped. Concerns over the U.S. economy were seen as one more reason for the decline in shares and demand for safe havens. The number of Americans filing new claims for unemployment benefits jumped to a 1-1/2-year high last week, a sign that the labour market is cooling off.
(Reporting by Nimesh Vora; Editing by Sohini Goswami)

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