Rupee at 1-month high; US data spurs bets of slower Fed rate hikes

RBI moves push up forward premia; reduce hurdles for currency

The rupee strengthened to a one-month high against the greenback on Monday as data showing slowing wage growth and a decline in a key economic gauge in the US spurred hopes of the Federal Reserve slowing down the pace of its rate increases.

The Chinese yuan—driven by the country easing real estate regulations—also propped up the rupee, dealers said. A stronger yuan typically boosts other emerging market currencies.

The rupee closed at 82.36 per US dollar as against 82.73 on Friday. Monday’s closing for the rupee marks the strongest level versus the US dollar since December 9.

Data released late