The Indian rupee closed stronger against the U.S dollar on Thursday following less hawkish remarks by Fed Chair Jerome Powell in his testimony to lawmakers.
The local currency strengthened four paise against the greenback to close at Rs 82.79, after opening little changed at Rs 82.82. It closed at Rs 82.83 on Wednesday. Intraday, the rupee had appreciated to its highest level since Sept. 4, 2023.
“The rupee is gradually climbing higher, and the base range is shifting upwards, with the range now positioned between Rs 82.65 and Rs 83.10,” said Jateen Trivedi, vice president, research at LKP Securities added.
“Indian rupee gained towards Rs 82.82 after the central bank allowed a bit of relaxation in its dollar buying strategy,” Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors.
“Today, we expect the rupee to gain more if allowed by RBI. Exporters to sell dollar in every uptick they get if RBI buys dollars,” he said.
“The dollar index weakened against most major currencies on account of less hawkish remarks by Fed Chair Jerome Powell in his testimony to lawmakers, where he said rate cuts were likely appropriate later this year, once the Fed officials gained greater confidence on inflation’s continued decline,” according to Ritesh Bhansali, director at Mecklai Financial Services.
