Indian Rupee Appreciates Amid Weak US Dollar After Fed Meeting

Indian Rupee Appreciates Amid Weak US Dollar After Fed Meeting

VoM News Desk | November 2, 2023 | 11:20 AM IST | Breaking News | Follow on Google News

Indian Rupee Appreciates Amid Weak US Dollar After Fed Meeting

Indian Rupee Appreciates Amid Weak US Dollar After Fed Meeting

The Indian rupee strengthened by 9 paise against the US dollar, trading at around 83.19 in early trading on Thursday. This appreciation comes in the wake of a weak US dollar following the US Federal Reserve’s policy meeting, which adopted a relatively dovish stance. The rupee opened at 83.21 against the dollar, marking a 7 paise increase from its previous close at 83.28.

Dollar Index Declines as Fed Keeps Interest Rates Unchanged

The dollar index, which measures the dollar’s performance against a basket of six major currencies, was down by 0.51% at 106.34. The US Federal Reserve’s decision to keep interest rates unchanged, along with a contented outlook for the economy by Fed Chair Jerome Powell, contributed to the dollar’s weakening. The 10-year bond yield also decreased to 4.70 in response to the Fed’s decision.

Factors Influencing the Rupee’s Performance

The rupee had previously settled at a historic low of 83.28 against the US dollar. Factors affecting the rupee’s movement include demand from importers, outflows by Foreign Portfolio Investors (FPIs), and European Central Bank (ECB) redemptions. Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, noted that the rupee’s opening at 83.22 was influenced by the Fed’s dovish stance during its policy meeting. Additionally, the rupee’s performance is influenced by the oil market, with Brent crude futures rising to $85.39 per barrel.

Indian Equities and Foreign Institutional Investors

In the domestic stock market, the BSE Sensex was trading higher, gaining 434.25 points or 0.68% at 64,025.58. The NSE Nifty 50 also advanced, gaining 132.85 points or 0.70% to reach 19,122.00. Foreign Institutional Investors (FIIs) were net sellers in the capital markets, selling shares worth ₹1,816.91 crore.

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VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.