Rupee increases against the dollar on less aggressive Fed bets

16 Jun 2023 , 11:40 AM

As new U.S. statistics suggested the Federal Reserve may not be as hawkish as it had indicated in its policy announcement earlier this week, the Indian rupee surged past the critical 82 per dollar threshold on Friday morning, matching rises in most other Asian currencies.

The rupee increased to its highest level versus the dollar since May 11 at 81.9450. On Thursday, it had been closed at 82.1750.

A dealer at a private bank claimed that ‘corporate inflows are helping’ and that ‘the market is not buying the Fed’s hawkish pause after the jobs data.’

‘Importers will rush to hedge,’ thus it will be difficult for the rupee to rise over 81.80.

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