Rupee slips to 94.04 on hawkish Fed tone

Mumbai:The rupee depreciated 33 paise to close at 94.04 (provisional) against the US dollar on Thursday, weighed down by a strong American currency.Forex traders said the dollar strengthened on a hawkish Fed speech and rising odds of a rate hike in December.

At the interbank foreign exchange market, the rupee opened at 93.73 against the dollar. During intra-day trade, it witnessed a high of 93.62 and a low of 94.06. The local unit settled at 94.04 (provisional), lower by 33 paise from its previous close.On Wednesday, the rupee gained 6 paise to close at 93.71 against the US dollar.

“We expect the rupee to trade with a slight negative bias on positive tone in the US dollar and elevated US treasury yields. Rising expectations of two rate hikes by the Fed amid hawkish tone of Fed speakers also weigh on the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

Choudhary further noted that positive domestic markets and foreign inflows may support the rupee at lower levels.”Traders may take cues from weekly unemployment claims and building permits data from the US. USDINR spot price is expected to trade in a range of 93.70 to 94.20,” he said.