Rupee opens flat at 74.84 ahead of Fed policy outcome
Rupee has been very resilient to domestic as well as global factors and there are expectations that the Fed policy could provide some direction to the currency.
By ETMarkets.com | Updated:
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New Delhi: The rupee on Wednesday opened almost flat at 74.84 against the US currency ahead of Federal Reserve’s policy outcome later in the day.
The domestic unit has been consolidating in a narrow range since last week. Brokerage Motilal Oswal Financial Services said no major change in rates expected from the US Fed but any commentary against market expectation could turn the tide for dollar.
Rupee has been very resilient to domestic as well as global factors and there are expectations that the Fed policy could provide some direction to the currency.
Dollar rose marginally against its major crosses ahead of the Fed policy statement and also after the US President yesterday said that he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal although he indicated talks were continuing.
In the next couple of sessions, market participants will be awaiting to see how these events unfold as it could provide a fresh trigger to the dollar that has been under severe pressure in the past few weeks.
“For the day, we expect USDINR (Spot) to quote in the range of 74.50 and 75.05,” Motilal Oswal Financial Services said in a note.
Pound held near its highest level in four months against the US dollar after the EU's chief negotiator mentioned that a trade deal with the UK is possible.
The European Union says a deal needs to be done by October to allow time for ratification by the end of the year. This week, apart from the FOMC policy statement, from US focus will also be on the advance GDP number and weaker-than-expected economic data could dampen the overall market sentiment.
The domestic unit has been consolidating in a narrow range since last week. Brokerage Motilal Oswal Financial Services said no major change in rates expected from the US Fed but any commentary against market expectation could turn the tide for dollar.
Rupee has been very resilient to domestic as well as global factors and there are expectations that the Fed policy could provide some direction to the currency.
Dollar rose marginally against its major crosses ahead of the Fed policy statement and also after the US President yesterday said that he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal although he indicated talks were continuing.
In the next couple of sessions, market participants will be awaiting to see how these events unfold as it could provide a fresh trigger to the dollar that has been under severe pressure in the past few weeks.
“For the day, we expect USDINR (Spot) to quote in the range of 74.50 and 75.05,” Motilal Oswal Financial Services said in a note.
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Pound held near its highest level in four months against the US dollar after the EU's chief negotiator mentioned that a trade deal with the UK is possible.
The European Union says a deal needs to be done by October to allow time for ratification by the end of the year. This week, apart from the FOMC policy statement, from US focus will also be on the advance GDP number and weaker-than-expected economic data could dampen the overall market sentiment.
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