नवीनतम
Rupee ends marginally higher amid outflow pressures
MUMBAI [Maha Media]: The Indian Rupee traded slightly higher on Thursday as the currency saw pressure from likely selling by foreign portfolio investors (FPIs) amid US trade and visa tensions.
The domestic currency closed two paise higher at 88.67 against the dollar on Thursday, according to Bloomberg. The currency fell 3.57 per cent so far this year, while it hit an all-time low of 88.79 on Tuesday. Selloff by global funds continued to the third day as they sold Rs 2,425.75 crore on Wednesday.
The RBI appears to be allowing a measured weakening of the rupee to support exporters, with market participants building a case for a rate cut in the October 1 meeting, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said.
Meanwhile, trade negotiations in the US yielded no positive outcome for India, and the Commerce Minister’s team is expected to return this weekend, analysts said.
The Trump administration on Tuesday said it is proposing to base allocation of the H-1B visa on skill level and wages instead of the current lottery method. This comes after Donald Trump signed an executive order raising the H-1B application fee to $100,000, from the earlier $2,000–5,000.
The Indian rupee may be affected by concerns over remittance growth, corporate repatriation, foreign equity flows and trade negotiations, Nomura Holdings said, according to a Bloomberg report. Trump’s tightening of H-1B visa norms will further dampen near-term sentiment on the rupee, the note said.
