MUMBAI, May 17 (Reuters) – The Indian rupee on Wednesday hit a greater than six-week low, monitoring broader greenback energy on greater U.S. yields and secure haven flows.

The rupee was at 82.4025 in opposition to the U.S. greenback by 10:59 a.m. IST, its lowest since April 3, in comparison with 82.2050 within the earlier session.

Safe haven demand and resilient U.S. financial information despatched U.S. yields greater in a single day. The two-year yield reached at excessive of 4.12%. U.S. equities declined and the greenback index rose to close 102.60.

The threat sentiment is down, mentioned Srinivas Puni, managing director at QuantArt Market Solutions.

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

“Dollar index strength may weigh on the rupee,” a dealer with personal financial institution mentioned, including that the foreign money is predicted to stay “pretty range bound”.

U.S. information launched in a single day indicated that the financial system remained resilient regardless of greater rates of interest. Retail sales rose 0.4% month-on-month in April, with management retail gross sales up 0.7%. Industrial manufacturing rose 0.5% on-month in April, with manufacturing output up 1.0%.

The information and feedback by U.S. Federal Reserve officers purchased into query the present expectations that the central financial institution will minimize charges later this yr.

Chicago Fed President Austan Goolsbee mentioned it was “far too premature to be talking about rate cuts”. Cleveland Fed President Loretta Mester mentioned charges weren’t but at some extent the place the central financial institution may maintain regular, given cussed inflation.

Reporting by Nallur Sethuraman in Mumbai; Editing by Varun H Okay

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