Rupee Slips To 81.26 Against Dollar After Hawkish Fed Tone

At an industry forum over the weekend, Federal Reserve Governor Christopher Walker said that the Federal Reserve would take a string of soft inflation reports for the bank to move away from rate hikes

The Indian rupee ended lower on Monday against the US dollar as a fresh warning from the US Federal Reserve revived the dollar. 

The rupee ended at 81.26 against the dollar, compared to the previous close of 80.81 on Friday. The local currency had opened at 80.53 and traded between 80.51 and 81.28 throughout the day.

At an industry forum over the weekend, Federal Reserve Governor Christopher Walker said that the Federal Reserve would take a string of soft inflation reports for the bank to move away from rate hikes.

Analysts say that any hawkish tone in the coming weeks from the US Federal Reserve could change the downward direction of the dollar.

Waller said that markets were well ahead of themselves after just one inflation print which helped limit the dollar’s sharp decline.