INR flips back from two month low as US Fed punctures dollar rally

Published on Mar 21, 2024 12:27

Indian Rupee has seen a sharp reversal today after its recent run of weakness. The INR rose amid a slide in the US dollar overseas as the US Fed retained its dovish monetary policy assessment for the year even as latest US inflation came in slightly sticky. The Federal Reserve announced its widely expected decision to leave interest rates unchanged on Wednesday, although the central bank`s forecasts suggests rate cuts are still likely later this year. The Fed policy committee noted that it will carefully assess incoming data, the evolving outlook, and the balance of risks in considering any adjustments to the target range for the federal funds rate. However, the undertone in the Fed statement followed by remarks from Fed Chief Jerome Powell punctured the rally in US dollar as the dollar index slumped nearly 80 basis points in intraday moves, giving up its two week top. The index fell under 103 mark today to trade at 102.92, down 0.10% on the day. INR, which had tested a near two month low in last session, bounced back impressively today and edged up near 83.05 per US dollar mark in early moves. The INR currently quotes at 83.12, up 7 paise on the day.