Rupee Trades Steady On FOMC Release; RBI To Buy G-Sec Under G-Sap Today

Rupee in line with weakness in the domestic markets and global cues has been steady at 73.16 per US dollar.

In the FOMC release made yesterday, the Fed pointed that the central bank in the US may resort to easy monetary policy if the US economy continues to grow strong rapidly.
Now as it points to a probable interest rate hike, funds from emerging markets in both the debt and equity market will see an outflow. This outflow of USD outside adds to pressure on the currency.

Last, on Wednesday, rupee closed at 73.16 per US dollar while the 10-year benchmark yield has been at 5.975 percent. Also, the Indian government is upping its purchase of government securities.

As announced in the centre's release on May 5, 2021, the Reserve Bank will initiate the second tranche of open market purchase of government securities of Rs. 35,000 crore under the G-sec Acquisition announced in Governor's statement today.

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