Investing.com — The weakened against the U.S. dollar on Friday, reversing earlier gains after the government released a list of authorized banks for and imports.
The USD/INR pair traded at 92.97, down 0.2% on the day, recovering from an intra-day low of 92.66 hit earlier in the session.
Reuters reported on Friday that banks had halted bullion imports due to delays in receiving the government order. The release of the authorization list triggered increased dollar demand.
Traders attributed the rupee’s decline to a pickup in dollar bids following the government order, along with hedging activity from importers. Earlier in the day, the rupee had strengthened on expectations of reduced dollar demand for bullion imports.
A trader noted that the 92.50-65 zone remains a key level to watch for potential downside movement in the near term.
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