Rupee escalates by 15 paise as dollar index continues to dives steeply

12 Jan 2022 , 01:28 PM

The rupee strengthened on Wednesday trade against the US dollar index as it continues to sink yet another day, followed by Federal Reserve Chair Jerome Powell’s congressional testimony, in which he said it may take considerable time to trim the US central bank’s $9 trillion balance sheet.

This increase could also be entitled to a boost in domestic equities. Indians also believe that the lack of dollar-buying interventions by the Reserve Bank could also be given its fair share for this rupee boost.

The rupee opened up at the 73.78 mark against the US dollar as against the previous close of 73.9050. The Indian currency moved within the price band of 73.76-73.80 per US dollar so far in the day.

Globally, the market sighed relief from the fact that Fed Chief’s comments do not provide a fresh impetus for a faster rate hike in the US economy. Foreign investors have started to show some appetite for domestic stocks, which is also a positive factor for the Indian economy.

The Euro continues to trade at 84.02 INRs per Euro, which amply dictates the strengthening of INR in the global markets.