Rupee likely to face near-term pressure

Besides rate-cut probability, global headwinds to keep investors on their toes

- Christina Titus

The rupee may continue to remain under pressure in the near term due to anticipations of a rate cut in the monetary policy review, scheduled for Friday, said experts. The rupee closed at 85.59 on Tuesday, down 20 paise. In May, the rupee fell 1.3% after appreciating during the previous two months.

Abheek Barua, former chief economist, HDFC Bank, and Sonal Bandhan, economist at Bank of Baroda, believe that the rupee will be under some pressure in the near-term as Reserve Bank of India's rate cut is expected to weigh on the currency.