Market News
Sour risk appetite on US slowdown concerns to keep rupee under pressure - REUTERS
MUMBAI, March 11 (Reuters) - The Indian rupee is likely to stay under pressure on Tuesday, as concerns over a potential tariff-driven U.S. recession sapped risk appetite across financial markets, driving most Asian currencies lower.
The one-month non-deliverable forward indicated that the rupee will open weaker at 87.40 to the U.S. dollar, compared with 87.33 in the previous session.
The local currency weakened 0.5% in the previous session, pressured by the maturity of positions in the non-deliverable forwards market.
Two traders pointed that these maturities are spread throughout the week, which could keep the rupee on the defensive.
Meanwhile, U.S. equities sold off sharply on Monday, with the S&P 500 (.SPX) down 2.7% and the Nasdaq Composite (.IXIC) slumping 4%, marking its worst day since September 2022. In Asia, Japan's Nikkei (.N225) fell about 2%, while the blue-chip Chinese equity index (.CSI300) was also trading in the red.
The downside risks to global growth from tariffs have been a concern for investors in recent sessions, particularly in light of a series of weak U.S. economic data signalling a slowdown in the world's largest economy.
