Indian rupee gains after US Fed chairman’s remarks

Web Report/Dubai
Filed on June 23, 2021

(PTI file)

Fed chief says US will not raise interest rates too quickly.

The Indian rupee rose 12 paise to 74.25 against the US dollar (20.23 versus the UAE dirham) at the opening of the market on Wednesday morning.

The US Federal Reserve Chair Jerome Powell’s comments that the US central bank will not raise interest rates too quickly supported investor sentiments.

But the Indian markets were trading lower as the Bombay Stock Exchange (BSE) Sensex was trading 128.5 points or 0.24 per cent lower at 52,460.23 points. While NSE Nifty fell 37.15 points, or 0.24 per cent, to 15,735.6 points on Wednesday morning.

"Fed Chairman Powell yesterday called the market by saying that Fed will not raise interest rates just on inflation and continued to say that inflation is more transitory," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali further said that The USD-INR crossed the level of 74.25 on sustained buying by oil companies and this level may now act as support.

"Importers to keep buying the dips while exporters may sell either by keeping a stop loss at 74.00 or sell the upticks towards 74.50. The range for the day 74.00 to 74.50," he noted.

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