The Indian rupee snapped a nine-day winning streak on Tuesday as it fell against the US dollar due to a broadly stronger dollar and risk-off sentiment in regional markets. This follows ongoing high inflationary pressures that continue to cloud the interest rate outlook. The rupee ended at 82.07 to the US dollar, down 0.2% for the day and marking its worst single-day fall since September 25. Anil Bhansali, head of treasury at Finrex Treasury Advisors, stated that the rupee will likely face hurdles in rising above 82.85 and will likely trade within a range of 82.85 to 83.20 in the near term. The fall in the rupee was in line with declines seen in its Asian counterparts. The onshore Chinese yuan dropped to a near two-month low against the dollar, while the Korean won fell by 0.9% to its lowest level since the first week of November. European Central Bank policymakers also stated on Monday that it is too early to discuss cutting interest rates due to high inflation. Asian equities were mostly lower, and European equities extended losses. Both of India’s share markets closed down around 0.3% each. The dollar index climbed to a one-month high of 103.13. Investors will continue to closely monitor the US Federal Reserve’s interest rate trajectory for clues about future rate cuts. Fed Governor Christopher Waller’s speech later in the day will be closely watched for any near-term clues about rate cuts. His late November comments had further convinced investors that the Fed will pivot towards rate cuts, which had sparked a rally in equities and bonds. ING Bank stated that they expect Waller’s speech to reiterate the same core message of successful disinflation and not discuss a 2024 easing cycle starting in March. Investors are predicting multiple rate cuts by the Fed in the successive meetings this year, starting in March.