Today Rupee opens lower at 67.14 per dollar in domestic market

The Indian rupee opened lower by 8 paise at 67.14 per dollar on Wednesday versus 67.06 Tuesday.

The dollar index hold steady as investors reassess the outlook for US monetary tightening.

US DOLLAR INDEX (USD)

The American currency traded on a flat note percent yesterday as investors now shift their attention towards the Jackson Hole meeting where the US Fed chairwoman will give a statement. Markets await more clarity on wh en the policymakers might raise interest rates. Moreover, markets are discounting the FOMC meeting minutes where the members of the committee were divided over when the next rate rise should come. As per federal funds future rates, only 12 percent traders saw a chance of rate hike in Sep'16 from 24 percent. The American currency made an intraday low of 94.20 and closed at 94.49 on Tuesday.

OUTLOOK

Rupee is likely to trade negative as investors play safe ahead of the annual conference in Jackson Hole, Wyoming which is scheduled to be held tomorrow which has kept Asian markets pressurized. Moreover, markets believe t hat the newly elected RBI governor Urjit Patel being an inflation hawk will not rush in cutting interest rates soon unless and until he is fully satisfied with the inflation rate.

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