Indian Rupee: Seen Pressured By Dollar Strength

3 Nov 2022 , 09:10 AM

The Indian rupee is seen pressured by dollar strength following a hawkish Fed in its recent monetary policy meet. The Federal Reserve on Wednesday announced its widely expected decision to raise interest rates by another 75 basis points. Citing efforts to achieve maximum employment and inflation at the rate of 2 percent over the longer run, the Fed announced its decision to raise the target range for the federal funds rate to 3.75 to 4 percent. The Fed also said that ongoing increases in rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. US benchmark 10-year treasury yields were soaring more than 1% while the greenback was quoting higher by nearly half a percent at 111.79. Yesterday, rupee depreciated 19 paise to close at 82.78 against the US dollar. At the interbank foreign exchange market, the local unit opened at 82.64 and witnessed a high of 82.62 and a low of 82.81. It finally settled at 82.78 against the American currency, registering a fall of 19 paise over its last close of 82.59. Powered by Commodity Insights