Indian rupee open 3 paise down at 86.58 against the US dollar

Indian rupee open 3 paise down at 86.5850 against the US dollar

Indian rupee opened 3 paise down at 86.5850 against the US dollar, as compared to 86.5550 at close against the greenback.

After opening down, it improved marginally and traded at 86.5775 against the US dollar.

The local currency opened marginally down despite the US Federal Reserve signalled no rush to cut rates after easing policy by a full percentage point in late 2024. “We do not need to be in a hurry to adjust our policy stance,” Powell said, adding that the Fed needs to see “real progress” on inflation or significant weakness in the labour market before considering further cuts.

The Fed's decision comes amid a resilient US economy, with Powell highlighting strong growth and a “solid” labour market. While some sectors, such as housing, have stabilised after weakness in early 2024, Powell acknowledged that low-income households continue to struggle with the lingering effects of past inflation.

The US Federal Reserve kept interest rates unchanged at 4.25 percent-4.5 percent in its latest policy decision, reinforcing its cautious stance as inflation remains "somewhat elevated."