Indian rupee slips to 90.67 against US dollar
The rupee was trading at 90.67 after opening 8 paise lower on February 13, mainly because the dollar gained strength overnight and other Asian currencies also lost ground.
RBI may step in to prevent further fall of rupee
A weaker rupee makes everyday imports more expensive, which can bump up prices for everyone.
On the flip side, Indian exporters get a boost since their goods become cheaper overseas.
Analysts say the RBI might step in to keep the rupee from falling too far, possibly around 90.70.
US inflation data awaited for Fed rate cut signals
The rupee rose more than 20 paise in early trade on February 12, with traders saying the RBI likely intervened in the non-deliverable forwards (NDF) market, but increased demand for dollars from importers erased those gains fast.
Meanwhile, India's inflation rate dropped back into the RBI's comfort zone at 2.75%—the first time since last August—which is good news for prices here at home.
Now, traders are watching US inflation numbers closely to guess if Fed rate cuts are coming soon.