Rupee bounces back, opens 9 paise higher at 66.84/$
The Indian rupee has bounced back on Friday. It has opened at 66.84 a dollar, higher by 9 paise compared with 66.93 a dollar in previous session.
US DOLLAR INDEX (USD)
In spite of the robust release of unemployment claims data from the nation, the US Dollar Index traded lower by 0.45 percent yesterday as recent surge in the currency prompted the traders to book profits. However, sharp losses were capped as markets are still discounting the FOMC Meeting Minutes that indicated at the possibility of a rate hike in the near future. The policy members were divided in their views over the labor market ultimately agreeing to US Fed Chairwoman’s argument for holding the interest rates at its present levels for now. Several voting Fed policymakers thought rates should rise 'relatively soon' . As per Fed funds futures, traders see about 11 percent chance of rate hike in Nov’16 and about 66 pct chance in December. US Dollar Index made an intraday low of 97.51 and closed at 97. 52 levels on Thursday.
OUTLOOK
US DOLLAR INDEX (USD)
In spite of the robust release of unemployment claims data from the nation, the US Dollar Index traded lower by 0.45 percent yesterday as recent surge in the currency prompted the traders to book profits. However, sharp losses were capped as markets are still discounting the FOMC Meeting Minutes that indicated at the possibility of a rate hike in the near future. The policy members were divided in their views over the labor market ultimately agreeing to US Fed Chairwoman’s argument for holding the interest rates at its present levels for now. Several voting Fed policymakers thought rates should rise 'relatively soon' . As per Fed funds futures, traders see about 11 percent chance of rate hike in Nov’16 and about 66 pct chance in December. US Dollar Index made an intraday low of 97.51 and closed at 97. 52 levels on Thursday.
OUTLOOK
Rupee is likely to trade negative as the FOMC meeting minutes pointed towards a rate hike possibility in the near future which will strengthen the DX in turn keeping the INR pressurized.
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