Rupee hits near three-week low at 95.24 vs USD as Asian currencies drop on Fed, Iran war caution

The Indian rupee weakened 0.6 percent to close at 95.2475 per US dollar, marking its worst single-day fall since June 8 and hitting a near three-week low. Asian currencies declined 0.1 to 0.5 percent as the dollar index rose to 101.4, supported by higher US Treasury yields and uncertainty over US-Iran peace talks. Despite recent measures to boost dollar inflows expected to bring about 50 billion dollars, analysts do not foresee meaningful rupee recovery over the next 12 months due to central bank forward dollar liabilities and tepid foreign portfolio inflows.