Rupee Extends Gaining Streak Against US Dollar After Fed Maintains Rate

The rupee extended its gaining streak against the US Dollar to sixth consecutive session on Thursday, after the US Federal Reserve maintained the interest rates. The rupee strengthened by 24 paise to open at 86.40 against US Dollar.

The US Fed kept the rates unchanged as expected and the median dot plot indicated two cuts this year. Fed revised growth projection for 2025 to 1.7% from 2.1% and inflation projection to 2.7% from 2.5%.

Fed Chair Jerome Powell has downplayed growth concerns and said that any inflationary impact from tariffs would likely prove transitory in his base case, according to India Forex and Asset Management Ltd.

Rupee has strengthened further in offshore and is likely to open around 86.35, IFA Global projected earlier. Analysts expects the currency to trade between 86.20 and 86.50 range with appreciation bias.