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Indian Rupee Rose To Hit 2-Month High Against US Dollar

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On Monday, the Indian rupee rose to 73.48 against the US dollar, reflecting a strong trend in local markets. The partially convertible rupee was trading at 73.48/49 per dollar, having touched 73.39 earlier, its highest level since June 16. On Friday, the currency had reached a low of 73.68.

 

Most Asian developing currencies rose somewhat Monday, as the dollar fell after US Federal Reserve Chairman Jerome Powell said on Friday that the central bank would be cautious in easing monetary policy.

Indian Rupee Rose To Hit 2-Month High Against US Dollar

Rupee futures maturing on September 28 appreciated by 0.76 percent on Friday's trading session on positive domestic markets, after US Federal Reserve Chairman Jerome Powell said at the Jackson Hole meeting that the central bank may start tapering its bond-buying program by year's end but will keep interest rates at current levels. Traders were also cautious ahead of US Federal Reserve Chair Powell's address.

"The rupee is likely to continue its strength amid weakness in the dollar, FII inflows, and rise in risk appetite in the global markets. Market sentiments improved as the US Federal Reserve failed to offer exact timing of tapering beyond saying it could be this year. However, concerns over an uptick in daily Covid-19 cases in India and a surge in crude oil prices may hurt the rupee. US$INR (September) is likely to trade at 73.50-73.90." ICICI Direct said in its research report.

 

In the aftermath of Fed Chair Jerome Powell sketching out a slower-than-expected path to rate hikes, the US dollar stayed near multi-week lows Wednesday, as traders' attention switched to U.S. jobs data due on Friday for hints on a tapering schedule.

The benchmark 10-year bond yield fell to 6.24 percent from 6.25 percent at the previous close.

On the local equities market, the BSE Sensex was up more than 500 points, while the Nifty was up about 1%. According to exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 778.75 crore.

Read more about: rupee dollar
Story first published: Monday, August 30, 2021, 12:24 [IST]
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