India pushing Rupee as next global trade instrument
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The rupee lost 15 paise to trade at a fresh two-week low of 64.68 against the dollar in early part today as the American unit strengthened overseas on upbeat data.
Upbeat US economic numbers gave investors reason to hope that the Federal Reserve will stick with its plan to hike rate, which put pressure on the rupee.
Forex dealers said the greenback's gains against other currencies overseas helped, which complemented the increased demand for the US currency from importers.
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Yesterday, the rupee took a hefty knock by plunging 23 paise to close at a two-week low of 64.53 a dollar after the US Federal Reserve delivered the widely expected rate hike and maintained a hawkish tone, going forward.
The benchmark Sensex recovered by 107 points, or 0.34 percent, to 31,182.73 in the opening trade today.
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