The US Federal Reserve is expected to increase rates by 25 bps.
The US Federal Reserve is expected to increase rates by 25 bps.
Tracking positive domestic equities and Asian currencies ahead of the US Federal rate hike, the rupee on Wednesday rose 42 paise to hit a nearly two-week high of 76.20 against the US dollar.
In the interbank forex market, the local unit opened higher at 76.40 against the greenback and saw intra-day highs of 76.19 and low of 76.44.
The rupee closed at 76.20, registering a rise of 42 paise over its previous close of 76.62.
“The rupee against the US dollar takes cues from stronger Asian currencies and riskier mood,” said Dileep. Forex market is slightly muted ahead of Fed’s decision on Wednesday, while US 10-year bond yield is back after touching 2.20% which is the highest level since 2019.” Parmar, Research Analyst, HDFC Securities.
The US Federal Reserve is likely to increase rates by 25 bps, with further such hikes likely this year amid high inflation.
Spot USDINR may find support near 76 to 75.70, while resistance is near 76.70, Mr. Parmar said.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.38% to 98.72.
Global oil benchmark Brent crude futures rose 1.14% to $101.05 per barrel.
On the domestic equity market front, the BSE Sensex closed 1,039.80 points or 1.86% higher at 56,816.65, while the broader NSE Nifty ended 312.35 points or 1.87% higher at 16,975.35.
Foreign institutional investors were net sellers in the capital markets on Tuesday as they sold shares worth ₹1,249.74 crore, according to stock exchange data.