Today Rupee opens flat at 66.97 per dollar in the market
The Indian rupee opened flat at 66.97 per dollar on Tuesday versus previous close 66.96.
The US dollar fell from over two-week high against a basket of major currencies on expectations that any Bank of Japan action this week would not weaken the yen and the Federal Reserve would refrain from raising rates.
US DOLLAR INDEX (USD)
The US Dollar Index traded lower by 0.3 percent yesterday as investors plays safe prior to the FOMC monetary policy meeting that is scheduled to be held today and tomorrow. This cautious stance and the recent strength in the currency have prompted the traders to book profits. Markets are expecting no rate hike move in the upcoming policy meet; discounting the dovish comments by Boston Fed President Eric Rosengren and Fed Governor Lael Brainard. Moreover, recent disappointing release of economic datasets excluding the inflation rate which surprisingly came on a better note has dimmed the chances of Sep’16 rate hike. All the above factors kept the DX pressurized which made an intraday low of 95.79 and closed at 95.77 levels on Monday.
OUTLOOK
Rupee is likely to trade higher as investors are expecting no unexpected move in today’s FOMC monetary policy meeting that will end tomorrow. This will keep the DX pressurized in turn proving support to the Indian Rupee. Moreover, gain in Asian market equities will govern the trend of t he Indian markets and its currency.
The US dollar fell from over two-week high against a basket of major currencies on expectations that any Bank of Japan action this week would not weaken the yen and the Federal Reserve would refrain from raising rates.
US DOLLAR INDEX (USD)
The US Dollar Index traded lower by 0.3 percent yesterday as investors plays safe prior to the FOMC monetary policy meeting that is scheduled to be held today and tomorrow. This cautious stance and the recent strength in the currency have prompted the traders to book profits. Markets are expecting no rate hike move in the upcoming policy meet; discounting the dovish comments by Boston Fed President Eric Rosengren and Fed Governor Lael Brainard. Moreover, recent disappointing release of economic datasets excluding the inflation rate which surprisingly came on a better note has dimmed the chances of Sep’16 rate hike. All the above factors kept the DX pressurized which made an intraday low of 95.79 and closed at 95.77 levels on Monday.
OUTLOOK
Rupee is likely to trade higher as investors are expecting no unexpected move in today’s FOMC monetary policy meeting that will end tomorrow. This will keep the DX pressurized in turn proving support to the Indian Rupee. Moreover, gain in Asian market equities will govern the trend of t he Indian markets and its currency.
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