Rupee Closes Weaker Against Dollar On A Cautious Fed
The local currency closed three paise weaker against the greenback at Rs 83.47.
The Indian rupee closed weaker against the dollar on Thursday after the US Federal Reserve kept its key interest rate steady for the sixth straight time. The local currency closed three paise weaker against the greenback at Rs 83.47. It had closed at Rs 83.44 on Tuesday, according to Bloomberg data.
The Federal Open Market Committee unanimously decided to hold its key interest rate at 5.25–5.5% in May, citing expanding economic activity and easing but elevated inflation, according to a statement on Wednesday night.
"The rupee is expected to maintain its resilience and may gradually strengthen to around 83.20 to 83.00 in the short term, with medium-term expectations aiming for levels around 82.50," Amit Pabari, managing director at CR Forex, said.
The US Dollar Index tumbled after taking into account cautious comments by Fed Chair Jerome Powell. US data showed that the labour market remained tight in April, according to Kunal Sodhani, vice president of Shinhan Bank.
Brent crude prices cooled off sharply and investors are pivoting to focus on Friday’s US nonfarm payrolls, Sodhani said.
