MARKET HEADLINES - Rupee depreciates against US dollar

Rupee fell to the lowest in two weeks against the dollar on Tuesday, tracking a stronger greenback.The rupee weakened to 64.25 to the dollar, down 38 paise, its lowest since July 27, compared with its previous close of 63.87.The sharp fall was seen after China's central bank allowed its domestic currency yuan to depreciate almost 2 per cent against the greenback to levels last seen three years ago. Following the move, most Asian currencies witnessed pressure. Rupee was no exception.Meanwhile, investors were keenly awaiting monthly retail sales data in the US scheduled for Thursday. A slew of recent upbeat economic data releases in the US have raised hopes that the US Federal Reserve is on track to raise interest rates in its September policy review.China's spot yuan closed down 1.8 per cent on Tuesday, posting its biggest daily drop after the central bank devalued the official midpoint by nearly 2 per cent. The yuan closed at 6.3231 versus the dollar, weakening from 6.2097 at the closed on Monday. It was the biggest daily centage fall since China established its foreign exchange market in 1994. The move by the People's Bank of China's comes after a run of poor economic data. The central bank billed the move as a free market reform but some analysts suspect could be the beginning of a longer slide in the exchange rate. 

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