Indian rupee opened 27 paise up on April 21 after the dollar index, which measures American currency's value against six major global peers, fell sharply to over three years low.
The local currency opened at 85.1125 against the US dollar, as compared to 85.3750 against greenback at previous close.
The dollar index weakened to around 98.28 on concerns about the Fed's independence, according to the media reports. The dollar index, was trading at 98.334 during the early trading session, as compared to 99.230 at previous trading session.
So far in this month, dollar index is down around 6 percent. Today, the dollar index is trading lowest since March 31, 2022, when it was at 98.312.
Amit Pabari, managing director at CR Forex Adviors said that U.S. dollar has been facing sustained pressure, with the Dollar Index down over 9 percent year-to-date. This reflects growing expectations that the Federal Reserve may eventually be forced to pivot. While Fed Chair Jerome Powell has maintained a cautious stance, signaling no immediate rate cuts, mounting political pressure — especially from former President Trump — is pushing for lower rates to support growth.
On the other hand, Indian rupee has been on an appreciating spree since the last seven sessions due to combination of encouraging domestic indicators and changing global tides.
Abhishek Goenka Founder & CEO of India Forex Asset Management - IFA Global expect to trade in a range 85.05-85.45 against the US dollar throughout the day.
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