Indian rupee – Rupee hits highest level in over a month thanks to dollar sales by foreign banks

Indian rupee – Rupee hits highest level in over a month thanks to dollar sales by foreign banks
Indian rupee – Rupee hits highest level in over a month thanks to dollar sales by foreign banks

The Indian rupee rose to its highest level in more than a month on Tuesday, helped by dollar sales by major foreign banks and a fall in Treasury yields ahead of the release of minutes from the Federal Reserve’s latest policy meeting. late in the day.

The rupee was at 83.23 against the US dollar at 10:00 IST, up 0.09 per cent from its close at 83.3050 in the previous session.

The rupee hit an intra-day peak of 83.2250, its highest level since April 10, in early trade.

Sales of dollars by at least two major foreign banks, probably on behalf of their clients, contributed to the rupee’s rise, a foreign exchange trader at a private bank said.

“Some reduction in long positions (on USD/INR) has also been observed, which contributes to the price action, the trader added.

The dollar index remained stable at 104.6, while most Asian currencies moved up and down. US bond yields fell, with the 10-year Treasury yield losing 2 basis points to 4.41%.

“In the short term, the rupee can be expected to approach the levels of 83.00 to 83.10,” said Amit Pabari, managing director at foreign exchange consultancy firm CR Forex.

With no key U.S. economic data this week, attention has focused on remarks from Fed policymakers.

In recent remarks, officials urged patience over when the rate cut cycle might begin.

“We are in a period where patience is really required,” Susan Collins, president of the Boston Fed, said Tuesday. “I think the data has been very mixed … and it’s going to take longer than I previously thought.

According to the CME’s FedWatch tool, investors currently give a nearly 65% ​​chance that the Fed will cut rates in September. (Reporting by Jaspreet Kalra; Editing by Nivedita Bhattacharjee)

-

-

NEXT at what time and on which channel to watch the fight?