Monday, July 25, 2016

Indain Rupee opens lower at 67.41 per dollar At currency market

The Indian rupee opened marginally lower at 67.41 per dollar on Tuesday against previous close 67.35.

The dollar slipped ahead of the US Federal Reserve's two-day policy meeting that begins later on Tuesday, while the yen gained on hopes that the Bank of Japan will ease later this week. The US central bank is widely expected to stand pat on policy, but investors were bracing for any possible signals from the Fed about a tightening later this year.

US DOLLAR INDEX (USD)

The American currency plunged by 0.2 percent in yesterday ’s trading session as recent robust release of economic datasets from the nation has led to increased speculation that US Feds might opt for a rate hike in the upcoming FOMC monetary policy review. This has led to huge volatility in the DX. Moreover, lack of important economic data releases and events kept the trading volumes light yesterday. The American currency made a n intraday low of 9 7. 25 and closed at 97. 21.

OUTLOOK

Rupee is likely to trade negative owing as mixed trading in the Asian markets will govern the trend of the Indian markets and its currency. Moreover , increased speculation with regards to US rate hike in the upcoming FOMC meeting that will take place today and tomorrow will likely keep the DX volatile in turn acting a negative factor for the Rupee.
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