MUMBAI (Reuters) – The Indian rupee weakened beyond 82 versus the U.S. currency in late afternoon trade on Tuesday, with traders citing stop losses being triggered as the dollar index jumped.
The rupee declined up to 82.05 per dollar, its lowest level since Jan.
10. It had opened at 81.58.
Dollar purchases by foreign banks in the morning and the strength in the dollar index triggered stop losses around the 81.75-81.80 mark, traders said.
Risk assets were having a poor show as the dollar gained 0.3%, after climbing above the 102-level overnight, with investors globally awaiting the outcome of the U.S.
Federal Reserve’s policy meeting on Wednesday.
Once the rupee exits the 81.40-81.80 range, “we would like to trade in the direction of the break,” said Anindya Banerjee, head of research – FX and interest rates at Kotak Securities.
“There is a risk of the rupee heading to 82.50, especially if the (Union) budget fails to boost sentiment,” he added.
Sour sentiment due to volatile Indian equities amid the Adani saga, and anticipation of the budget, due on Feb.
1, could keep the rupee under pressure this week, a trader said.
(Reporting by Anushka Trivedi; Editing by Janane Venkatraman and Eileen Soreng)
