MUMBAI, Dec 13 Reuters The Indian rupee slipped against the dollar on Tuesday, mirroring the fall in Asian currencies ahead of the U.S. inflation report, while importerled demand for the greenback weighed.
The partially convertible rupee ended at 82.8050 per dollar, against its previous close of 82.53.
Dollar demand by domestic players continued, with importers of oil and other commodities bidding heavily for the U.S. currency, a foreign exchange trader said.
Asian currencies were weaker against a steady dollar index ahead of the November U.S. consumer prices report. Any positive surprise there could influence the Federal Reserve39;s monetary policy decision due on Wednesday.
For now, markets are largely expecting inflation to ease slightly and for the Fed to hike rates by 50 basis points bps.
We could see the dollar bouncing on any upside surprise in today39;s CPI data, including upward revisions to last month39;s reading, ING analysts wrote, but with a caveat that the moves could be curtailed due to the looming Fed meet.
In India, headline inflation came in at a much lower than expected 5.88 in November led by lower food prices and vegetables, data showed on Monday.
We continue to expect another 25 bps hike in the February 2023 policy review even though it could be a tough choice if external headwinds and monetary tightening start weighing on domestic demand, said Tanvee Gupta Jain, UBS India economist.
The other set of data out on Monday showed India39;s…