India Rupee Likely Lower Amid Equity Pullback; Dollar Rebounds

India Rupee Likely Lower Amid Equity Pullback; Dollar Rebounds

22 Oct 2020 09:09 AM
 

The Indian rupee is expected to weaken against the dollar tracking the decline in regional currencies and equities.  U.S. elections and fiscal stimulus developments remained the main area of focus for investors.

The rupee will be quoted around 73.65-73.70 in early trades compared with 73.58 in the previous session.

Yesterday, the currency dropped about 12 paisa after opening on a positive note. Traders attributed dollar bids by three state-owned banks for the decline.

In Asia trading, equity gauges of Hong Kong, South Korea, Japan, and Australia were down about 0.6% each. Futures suggested that the S&P 500 Index could add to yesterday’s losses.

The dollar index added 0.2% to reach 92.75, pulling Asian currencies lower. The South Korean won dipped 0.2% and the onshore Chinese yuan lost 0.1%.