Indian rupee starts higher as US economy weakens

Indian rupee starts higher as US economy weakens

Traders said interest is focused on the Reserve Bank of India’s OMO plan, as it is expected to impact liquidity, short-term interest rates and the rupee’s direction.

The Indian rupee begins to rise due to the weakness of the US economy

The Indian rupee started trading higher on November 6 due to US non-farm payrolls data indicating a weak economy. This has increased expectations that the Fed will end interest rate hikes, strengthening the Indian rupee. At 9:10 a.m., the local currency was trading at $83.16, representing a 0.15 percent rise from the previous closing price of 83.29.

“Overall, the rupee has shown strong resistance around 83.30 level over the past three months, especially when global factors have been unfavorable. Recent developments, including a reversal in the US dollar index from higher levels of 107 to 105 in just three trading sessions and a decline in the dollar American 10-CR Forex said in its latest note that the year’s returns from 4.93% to 4.50% in the past three sessions indicate positive expectations for the rupee.

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The Federal Reserve’s decision to keep interest rates steady, coupled with Chairman Jerome Powell’s proposal to pause interest rate hikes, has caused a shift in the market. Now, there is only a 5% chance of a rate hike in December, in contrast to the previous probability of 20% according to the Chicago Mercantile Exchange’s FedWatch tool.

Traders said interest is focused on the Reserve Bank of India’s OMO plan, as it is expected to impact liquidity, short-term interest rates and the rupee’s direction.

Asian currencies were trading higher. The South Korean won rose 1.57 percent, the Malaysian ringgit jumped 1.33 percent, the Indonesian rupiah 1.11 percent, the Taiwanese dollar 0.57 percent, the Philippine peso 0.47 percent, the Thai baht 0.3 percent, and the Singapore dollar 0.19 percent. Among the losers, the Japanese yen fell 0.15 percent, and the Chinese renminbi lost 0.1 percent.

The dollar index, which measures the strength of the US currency against major currencies, was trading at 105.069, up 0.05 percent from its previous close at 105.021.


    (Tags for translation) Market news 

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