Indian Rupee Strengthens Against US Dollar

Indian Rupee Strengthens Against US Dollar
Indian Rupee Strengthens Against US Dollar

The Indian rupee opened strong against the US dollar on Thursday amid the weakening of dollar index after the US Federal Reserve held its key interest rate steady.

The Federal Open Market Committee decided to hold its key interest rate at 5.25-5.5% in November in a unanimous decision, according to its statement on Wednesday night. It kept the door open for another hike this year to cool inflation.

The local currency strengthened 6 paise to open at Rs 83.23 against the US dollar on Thursday. It closed at an all-time weakest level of Rs 83.29 against the US dollar on Wednesday, according to Bloomberg data.

“Positive bias lingered on yesterday testing 83.3, the upper boundary for our intermediate range,” Geojit Financial Services said in a note. “Breakout range continues to be 83.4-83 a breach of which is required to bring in speed.”

“Inability to push beyond 83.4 or inability to float above 83.26 could render the bias weak”, it said.

“Fed Chair Jerome Powell insisted the Fed could still hike after a long pause. Rejecting a recession adds to the hawkish tone,” Kunal Sodhani, vice president, Shinhan Bank (Global Trading Centre), said.

“Markets will be turning towards Friday’s US Non-Farm Payrolls (NFP) print. BoE rates to remain unchanged. For USDINR, 83.15 acts as a support while 83.32 a resistance,” Sodhani said.

The article is in Dutch

Tags: Indian Rupee Strengthens Dollar


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