Rupee opens 24 paise down at 71.36 after Fed rate cut; local currency witnesses heavy volatility in early trade
The Indian rupee opened 24 paise down at 71.36 against the American currency on Thursday after the US Federal Reserve cut its benchmark interest rate
-
At the interbank foreign exchange, the domestic currency witnessed heavy volatility in early trade
-
The rupee opened at 71.36 per US dollar then touched a high of 71.15 and a low of 71.37
-
The domestic unit pared some losses and was trading at 71.23 against the dollar at 1010 hrs
Mumbai: The Indian rupee opened 24 paise down at 71.36 against the American currency on Thursday after the US Federal Reserve cut its benchmark interest rate.
At the interbank foreign exchange, the domestic currency witnessed heavy volatility in early trade. The rupee opened at 71.36 per US dollar then touched a high of 71.15 and a low of 71.37.
On Wednesday, the rupee had settled for the day at 71.24 against the US dollar.
Related Articles
The domestic unit pared some losses and was trading at 71.23 against the dollar at 1010 hrs.
Representational image. Reuters
In line with market expectations, the Federal Open Market Committee lowered the policy interest rate by 25 basis points to a target range of 1.75 to 2.0 percent.
Forex traders said investors turned cautious after the US Fed dimmed hopes of further rate cuts.
The US Federal Reserve Chairman Jerome Powell downplayed concerns in recent days about a cash crunch in US financial markets and said that the situation says little about the real economy.
Forex traders said weak opening in domestic equities and unabated foreign fund outflows also weighed on the domestic currency.
Domestic bourses opened on a negative note on Thursday with benchmark indices Sensex trading 328.60 points down at 36,325.28 and Nifty lower by 59.40 points at 10,781.25.
Foreign institutional investors (FIIs), offloaded shares worth Rs 959.09 crore on Wednesday, according to provisional exchange data.
Meanwhile, Brent crude futures, the global oil benchmark, rose 0.05 percent to $63.63 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.09 percent to 98.47.
The 10-year government bond yield was at 6.59 percent in morning trade.
also read
First day of Rs 2,000 currency exchange gets off to a rocky start across cities: What banks said
RBI governor Shaktikanta Das had on Monday said people should not panic and rush to return or exchange their Rs 2,000 currency notes as they have four months to do so. Even after September 30, the notes would continue to be legal, he asserted
Gold is going to be record costly and de-dollarisation is the reason
Dedollarisation is picking up quick and fast; the Ukraine war has fueled the speed of countries moving away from the American dollar, to circumvent Western sanctions
De-dollarization has begun, says Russia’s foreign minister Sergey Lavrov
Sergey Lavrov said that Russia has many allies and like-minded friends who echo Moscow’s stance on reducing the prominence of US dollar