Rupee trades higher as Fed signals slower rate hikes

3 Mar 2022 , 11:59 AM

The domestic currency strengthened on Thursday morning trade against the US Dollar post US Fed Reserve Chair Jerome Powell’s comments hinting a slower pace of rate hikes than previously expected. 

The Indian Currency opened at 75.63 per US Dollar and was the last trading at 75.68 per dollar against its previous closing of 75.70/$. On Wednesday, Rupee closed at the lowest levels since December 2020. So far in the day, the local currency swirled between 75.6470-75.6800 against the greenback.

In a recent update, Powell hinted at a 25-bps hike in March against the expectations of 50-bps hike, considering that the world’s largest economy’s inflation is at 40-year highs.

While Powell’s statement lent some comfort to currency traders, soaring oil prices kept the investors’ sentiment low.

Domestically, Indian benchmark indices were trading higher after falling drastically earlier this week. BSE Sensex was at 55,624.17 points against its previous closing of 55,468.90 points, up by 155.27 points. NSE Nifty was at 16,641.40 points, up by 35.45 points against previous closing of 16,605.95 points.

On the international front, Brent Crude Oil futures crossed the $110 mark on Wednesday and was currently trading at $116.76 per barrel, up by 3.39% against its previous closing. Oil prices are marching upwards ever since the Russia-Ukraine conflict fired up, and continues to move in a higher band.