Tuesday, September 20, 2016

Today Rupee opens higher at 66.99 per dollar in the market


The Indian rupee opened marginally higher at 66.99 per dollar on Wednesday versus 67.01 Tuesday.

US DOLLAR INDEX (USD)

The US Dollar Index had a volatile start and ended higher 0.2 percent yesterday as investors speculates whether the US Fed will hike interest rates or not in today’s monetary policy review. Markets are expecting no rate hike move in the upcoming policy meet; discounting the dovish comment s 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. However, they are expecting that the US Fed chairwoman Janet Yellen will give some hint on future rate hike timings due to which demand for DX got a boost which made an intraday high of 95.99 and closed at 95.98 levels on Tuesday.

OUTLOOK

Rupee is likely to depreciate in today’s trading session as heavy speculation prior to the release of FOMC monetary policy review will keep the DX volatile. Moreover, negative trading in Asian market equities will govern the trend of the Indian markets and its currency.

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