Indian rupee dips amid strong US dollar, volatile trading

The Indian rupee and other regional currencies weakened on Tuesday due to a stronger US dollar, declining Asian equities, and month-end dollar payments from importers.

The rupee ended the day at 85.33 against the US dollar, marking a 0.3 per cent decrease.

The South Asian currency has been volatile, fluctuating from a low of 86 last week to a high of 84.78 on Monday before giving up those gains due to a stronger dollar.

The rupee’s implied volatility for the near term has increased, with the spot-week gauge surpassing 6 per cent, compared to the year-to-date average of approximately 4.5 per cent.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama