Rupee extends weakness amid firm dollar overseas

The Indian rupee extended weakness in opening trades on Friday tracking a firm dollar overseas. INR opened at Rs 88.22 per dollar and is staying a narrow range so far during the day. Yesterday, rupee slipped back beyond 88 per dollar mark as greenback regained momentum after Fed sounded cautious on further rate cuts. INR depreciated 28 paise to close at 88.13 against the US dollar. The US FED reduced rates by a quarter point as expected and indicated that it will steadily lower borrowing costs for the rest of the year. However, cautionary appearance from Fed Chair Jerome Powell bolstered the US Dollar. In considering additional adjustments to the target range for the federal funds rate, the Committee said it will carefully assess incoming data, the evolving outlook, and the balance of risks. Moreover, the rupee remained under pressure on worries over US tariffs on India and global trade uncertainties. Besides, sustained foreign fund outflows also dented investor sentiments. Indian shares rose for a third consecutive session on Thursday as optimism prevailed over ongoing U.S.-India trade talks and the U.S. Federal Reserve delivered its first rate cut this year, citing recent sluggishness in the labor market. The benchmark BSE Sensex rose 320.25 points, or 0.39 percent, to 83,013.96, extending gains for a third day running. The broader NSE Nifty index settled up 93.35 points, or 0.37 percent, at 25,423.60.

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