Rupee opens 16 paise higher at 70.68 against dollar

The rupee on Thursday opened 16 paise higher at 70.68 against the US dollar after the US Federal Reserve held interest rates steady in its final policy meeting of the year and signalled no changes in 2020 amid solid economy and persistently low inflation.

The local currency appreciated by 7 paise to settle at a fresh one-month high of 70.85 against the US dollar on Wednesday on the back of firm domestic equities and easing crude oil prices.

The Fed’s move can provide a double booster for domestic financial markets as US stocks added to the gains, while the dollar slipped to a four-month low after the policy decision.


The central bank’s rate-setting committee was unanimous for the first time since May in keeping the benchmark overnight lending rate between 1.50 per cent and 1.75 per cent.

Fed chairman Jerome Powell in a post-policy media interaction said the three interest rate cuts affected during 2019 have supported the economy.

On the domestic front, inflation and industrial production number will be released later in the day.

“Expectation is that the number could disappoint and keep gains in check for the rupee. Today, USDINR pair is expected to quote in the range of 70.70 and 71.20,” Motilal Oswal Finanical Services said in a report.