Today Rupee opens 2-week low at 66.99 per dollar in the currency market
The Indian rupee opened at two weeks low at 66.99 per dollar on Wednesday, down 7 paise against 66.92 Monday.he US dollar gained against the yen and riskier commodity currencies after the impact of dovish remarks from a top Federal Reserve official faded, boosting sentiment toward the greenback.
US DOLLAR INDEX (USD)
US Dollar Index rose by 0.6 percent in yesterday’s trading session amid a decline in US stocks and rising bond yields. Recent dovish comments by Boston Fed President Eric Rosengren and Fed Governor Lael Brainard have reduced expectations of a rate hike in Sep’16 monetary policy review. Both the policymakers have hinted towards a rate hike possibility by the end of 2016, preferably Dec’16. The likelihood of a rate hike in 2016 has risen since last week, with the CME Fed Watch Tool indicating a 2 4 percent chance for a Sep ’ 16 move and a 44 percent likelihood of a Dec ’ 16 hike. This boosted the demand of the greenback, keeping it strong against its major peers. US Dollar Index made an intraday high of 95.68 and ended at 95.65 levels on Tuesday.
OUTLOOK
Rupee is likely to depreciate tracking losses in the Asian market equities as surge in bond yields has increased volatility thereby prompting investors to book profits. Moreover, increased speculation that the US Fed will hike borrowing rates in Dec’16 FOMC meeting has boosted the demand for the greenback in turn keeping the Indian rupee pressurized.
Read More - Currency Market
US DOLLAR INDEX (USD)
US Dollar Index rose by 0.6 percent in yesterday’s trading session amid a decline in US stocks and rising bond yields. Recent dovish comments by Boston Fed President Eric Rosengren and Fed Governor Lael Brainard have reduced expectations of a rate hike in Sep’16 monetary policy review. Both the policymakers have hinted towards a rate hike possibility by the end of 2016, preferably Dec’16. The likelihood of a rate hike in 2016 has risen since last week, with the CME Fed Watch Tool indicating a 2 4 percent chance for a Sep ’ 16 move and a 44 percent likelihood of a Dec ’ 16 hike. This boosted the demand of the greenback, keeping it strong against its major peers. US Dollar Index made an intraday high of 95.68 and ended at 95.65 levels on Tuesday.
OUTLOOK
Rupee is likely to depreciate tracking losses in the Asian market equities as surge in bond yields has increased volatility thereby prompting investors to book profits. Moreover, increased speculation that the US Fed will hike borrowing rates in Dec’16 FOMC meeting has boosted the demand for the greenback in turn keeping the Indian rupee pressurized.
Read More - Currency Market
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