Foreign Banks Dump US Dollars, Helps Rupee & Local Currencies Rise
The Indian rupee edged higher against the US dollar on Wednesday after foreign banks initiated mild sell-offs in the markets. The move has helped the rupee and other leading Asian currencies remain steady during the US and China trade talks. The rupee was hovering at 85.46 minutes after the opening bell with a surge of 0.2% from its previous close at 85.60. Reuters reported that foreign banks dumped US dollars as China agreed on a framework to ease trade tensions. At least two large foreign banks, most likely on behalf of institutional custodial clients were behind the sell-off. The development eventually “helped the rupee out,” said a trader at a state-run bank. Also Read: De-Dollarization: Wall Street Banks Forecast Further US Dollar Weakness This limited the US dollar’s growth at the DXY index and it failed to climb above the 100 mark. The DXY index remains in the green on Wednesday but is at 99.11 with an uptick of 0.01%. Previously, the greenback rallied during ne...