By 10:20 a.m., the rupee was trading at 82.2225 to the dollar, up from 82.36 the previous day.
On Tuesday, the Indian rupee climbed to a fresh one-month high versus the US dollar on hopes that the US Federal Reserve could change its aggressive stance.
By 10:20 a.m., the rupee was trading at 82.2225 to the dollar, up from 82.36 the previous day.
According to a trader at a private sector bank, we anticipate an increase in importers’ hedging activity at present levels and most likely all the way to 82, assuming we succeed in getting there.
The rupee benefits from the dollar’s ongoing struggles following the release of the U.S. employment data. The assumption that the Fed would likely suspend its rate rise cycle after two increases of 25 basis points has caused the dollar index USD to decline by roughly 2% during the previous two sessions.
The Fed rate would then be 4.75–5%. According to Fed futures, the current implied high is 4.9% FEDWATCH.
On Monday, two Fed officials said that the market’s pricing of the peak was generally consistent with their estimates.
Rates should be between 5% and 5.25%, according to San Francisco Fed President Mary Daly, and Raphael Bostic, president of the Atlanta Fed, anticipates rates to move over 5% but not much.
