Rupee faces year-end pressure, ends at 75.52

MUMBAI : The rupee slipped to a 16-month low of 75.60 against the US dollar in intraday trade as some foreign investors booked profits ahead of the year-end. The domestic currency opened at 75.45 and came under pressure following a sustained demand for dollars. It finally closed at 75.52, down 6 paise from its previous close of 75.46.
According to a report by IFA Global, foreign investors are cautious ahead of the release of US inflation data on Friday. A sharper increase in prices in the US increases the risk of interest rates rising there. Higher interest rates would cause money to move back into US treasuries, triggering an appreciation of the dollar.
Foreign banks bought US dollars to cover their existing bets placed in favour of the rupee, ahead of the end of the calendar year. This dragged the domestic currency. Dealers are also watchful of the equity markets as some of the…

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