Indian Rupee had a failed attempt to strengthen against the US dollar ahead of the key FOMC minutes. On the currency market, the USD/INR exchange rate settled 12 paise lower at 71.70 on Tuesday close. Not before touching a low of 71.47.
During the early Asia trading hours and after the London open, Rupee was seen quote slightly lower. The value was around 71.52 against the US dollar.
Indian Finance Minister Anurag Thakur, announced that the government is not planning to amend its fiscal deficit target of 3.3% of GDP for the current fiscal year. The real GDP has fallen at 5$ the lowest level in six years. This prompted renewed selling pressure on the USD/INR exchange rate. This helped Rupee recoup some of its early losses.
The domestic benchmark equity index NIFTY 50 gaped higher on Tuesday. It closed in positive territory at 11940 registering a 0.47% gain. However, during early Asia trading hours, NIFTY 50 was seen quoted higher at 12038. The Indian 10-year government bond yield closed at 6.47 versus the 6.48 previous closing prices.
The dollar index closed slightly up on Tuesday settling at 97.86 or 0.03% gain.
The US Federal Reserve is scheduled to release the minutes from its October policy meeting. It is expected to provide further clarity for the US dollar trend. The Fed slashed interest rates by 0.25%, the third decrease this year amid trade and growth fears. The minutes will reveal if the Fed intends to continue easing through 2020 as well.
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