Indian Rupee: Dollar Strength To Weigh

21 Sep 2022 , 09:06 AM

Strength in dollar in early trades on Wednesday is expected to keep the Indian rupee under pressure in opening trades. The dollar index climbed up above 110, moving closer to its highest levels in 20 years ahead of crucial Fed monetary policy decision where the central bank is expected to hike interest rates aggressively to curb stubbornly high inflation. The greenback also tracked Treasury yields higher, with the benchmark 10-year US yield rising above 3.5% to its highest since February 2011. On Tuesday, rupee settled 7 paise higher at 79.74 (provisional) against the US dollar. Investors await the US Feds policy statement for further cues. At the interbank forex market, the local unit opened at 79.70 against the greenback. It witnessed an intra-day high of 79.58 and a low of 79.77 during the session. It finally ended at 79.74, up 7 paise from its previous close of 79.81. Asian stock markets are mostly lower on Wednesday, following the negative cues from global markets overnight, ahead of the US Feds interest rate decision as well as the anticipated hawkish accompanying statement by Fed Chair Jerome Powell later in the day.Powered by Commodity Insights