Rupee opens 20 paise up at 70.92 vs dollar as Fed holds rate

The rupee on Thursday opened 20 paise higher at 70.92 against the dollar after the US Fed kept interest rates steady on Wednesday.

The local currency on Wednesday ended flat at 71.12.

Today, on the domestic front, market participants will be keeping an eye on the fiscal deficit figure for December. Better-than-expected data could extend gains for the rupee.


“Today, USD-INR pair is expected to quote in the range of 70.70 and 71.40,” brokerage firm Motilal Oswal Financial Services said.

The dollar came under pressure against its major peers after the Federal Reserve in its policy statement held rates unchanged.

The central bank said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the US economic outlook.

While the Fed said continued US economic and job growth were still “the most likely outcomes”, it removed language from its December policy statement that risks to the outlook were “roughly balanced” and struck language that projected “some further” rate hikes would be appropriate in 2019.

From the US, focus will now shift to non-farm payroll number to gauge a view for the greenback.