In a worst phase for Rupee in the last five weeks, the partially convertible Indian currency ended 0.1 per cent as against Rs 79.74 per dollar recouping some of the day’s losses when it had hit an over one week low.
For the week, the Rupee declined 0.2 per cent, its biggest loss since the week closed August 12.
The risk sentiment for the Rupee was hit as Chinese Yuan weakened past 7 per dollar to breach a key psychological level for the first time in 2 years, experts said.
The Market participants became cautious as the Rupee had not been allowed to weaken past Rs 80 per dollar and viewed it as a level to protect. The traders were unwinding long dollar positions and creating fresh shorts, said a prominent foreign exchange dealer.
China witnessed its Yuan falling to 7.0166 as against a growing dollar and a slow domestic economy which had a cascading effect on its regional peers in view of their close trade relationship.
Traders are now eyeing on monetary policy meetings by the Federal Reserve, the Bank of Japan and the Bank of England next week even as the Fed meeting is expected to take a centre stage.
