A series of weak economic data from the U.S. has fuelled expectations that the Fed may reduce the magnitude of rate hikes or even pause it. A lower reading in the housing data due later in the day could restrict the recovery in the dollar, analysts said.
The energy-sensitive rupee closed out the 2021-22 financial year with a loss of over 3.5 per cent, tracking a general surge in crude oil prices from the ongoing Russia-Ukraine war.