Indian rupee hits six-week low on broad dollar strength

MUMBAI, May 17 (Reuters) – The Indian rupee on Wednesday hit a more than six-week low, tracking broader dollar strength on higher U.S. yields and safe haven flows.

The rupee was at 82.4025 against the U.S. dollar by 10:59 a.m. IST, its lowest since April 3, compared to 82.2050 in the previous session.

Safe haven demand and resilient U.S. economic data sent U.S. yields higher overnight. The two-year yield reached at high of 4.12%. U.S. equities declined and the dollar index rose to near 102.60.

The risk sentiment is down, said Srinivas Puni, managing director at QuantArt Market Solutions.

A weak China data has pulled down the Asian forex market, he added.

“Dollar index strength may weigh on the rupee,” a trader with private bank said, adding that the currency is expected to remain “pretty range bound”.

U.S. data released overnight indicated that the economy remained resilient despite higher interest rates….

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