Rupee Ends Weaker Against Dollar Ahead Of Expected MSCI Weightage Increase
The local currency depreciated by 2 paise to close at 83.92, according to Bloomberg data. It had closed at 83.90 on Friday.
The Indian rupee closed weaker against the US dollar on Tuesday amid falling crude prices and an expected weightage increase in the MSCI Index.
The local currency depreciated by 2 paise to close at 83.92, according to Bloomberg data. It had closed at 83.90 on Friday.
The dollar index, which tracks its performance against a basket of 10 leading global currencies, opened flat and was trading 0.04% lower at 100.82 at 3:40 p.m. IST.
India’s weightage in the MSCI Global Standard Index is set to increase, potentially attracting nearly $3 billion into the Indian market by the end of the month, said Amit Pabari, managing director at CR Forex Advisors. "This influx of capital could provide much-needed support for the rupee."
"All eyes are on the upcoming Personal Consumption Expenditures data release this week. A weaker-than-expected result could weigh on the dollar index, potentially offering some relief to the rupee. Conversely, a stronger outcome might give the dollar the boost it needs, adding pressure on the rupee," he said.
International benchmark Brent oil was at $79.74, down 0.76%, at 3:42 p.m. IST. It was initially at $81.22, down 0.26% following Monday's rise as the eastern Libyan government announced that it will halt exports.
