Forex: Rupee slide persists; USD/INR hits 50.60.

FXstreet.com (San Francisco) - After falling for a second consecutive session on Tuesday, the Indian rupee remains weak against the US dollar this Wednesday, as USD/INR has rallied to a 12-day high of 50.57 as hopes of interest rates cuts have faded.

"Expectations of a sharp reduction in policy rates by the Reserve Bank of India have been dampened by the sticky global oil prices, a key influencer of inflation in Asia's third largest economy which relies heavily on imported oil," explains The Economic Times. "Some traders, however, do not expect a sharp slide in the rupee as the central bank is seen intervening actively to support the currency."

According to a dealer with a foreign bank, the pair is likely to continue trading with an upward bias as the USD demand for defense imports that pushed the pair higher yesterday is likely to continue, Dow Jones Newswires reported. At time of writing, USD/INR is pushing higher, last quoted at 50.60, up from 50.39 at the end of Tuesday's trading.

Source : fxstreet.com