Rupee closes down; forward premiums hover around 2023-lows

The Indian rupee weakened against the US dollar on Tuesday due to strength in the US currency and weakness in the Chinese yuan. The rupee reached 82.71 against the dollar. The yuan also continued to weaken, causing concern regarding China’s recovery and the hawkish outlook from the US Reserve. However, the possible buying from government companies and some foreign inflows into Indian equities have eased the rupee’s fall to some extent.