Rupee appreciates 14 paise to 67/$ on Fed, GST hope
The domestic currency had settled 13 paise higher at 67.14 a dollar on Wednesday amid sustained dollar selling by banks and exporters.
By ET Online | Updated:
NEW DELHI: The rupee climbed 14 paise to 67 against the US dollar in Thursday’s trade after the US Fed in its two-day policy meet decided to maintain status quo on the policy rate for now.
The domestic currency had settled 13 paise higher at 67.14 a dollar on Wednesday amid sustained dollar selling by banks and exporters.
A statement issued by the US Fed read: “The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will strengthen.”
The Fed said that near-term risks to the economic outlook have diminished and it continues to monitor inflation indicators and global economic and financial developments.
“In determining the timing and size of future adjustments to the target range for the federal funds rate, thecommittee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation,” the Fed statement said.
The dollar index, which measures the movement of dollar against a basket of six major world currencies, stood at 96.60, down 0.19 per cent. Most Asian currencies such as the Chinese yuan, the Korean won, the Malaysian ringgit and the Taiwanese dollar were trading higher.
Meanwhile, hopes that the GST bill will soon see the light of the day brightened after the Union Cabinet made changes in the GST constitutional amendment bill and that too added to the sentiment.
The government has finally dropped the 1 per cent manufacturing tax and given a guarantee to compensate the states for any revenue loss in the first five years of its rollout.
The domestic currency had settled 13 paise higher at 67.14 a dollar on Wednesday amid sustained dollar selling by banks and exporters.
A statement issued by the US Fed read: “The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will strengthen.”
The Fed said that near-term risks to the economic outlook have diminished and it continues to monitor inflation indicators and global economic and financial developments.
“In determining the timing and size of future adjustments to the target range for the federal funds rate, thecommittee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation,” the Fed statement said.
The dollar index, which measures the movement of dollar against a basket of six major world currencies, stood at 96.60, down 0.19 per cent. Most Asian currencies such as the Chinese yuan, the Korean won, the Malaysian ringgit and the Taiwanese dollar were trading higher.
Meanwhile, hopes that the GST bill will soon see the light of the day brightened after the Union Cabinet made changes in the GST constitutional amendment bill and that too added to the sentiment.
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The government has finally dropped the 1 per cent manufacturing tax and given a guarantee to compensate the states for any revenue loss in the first five years of its rollout.
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