|USD/INR previous four days:||Rate – Average|
Indian Rupee inches to a 4-week high against the greenback amid RBI accommodative stance. The Rupee appreciated by 24 paise settling at 71.12 (New York close based-price) against the US dollar.
During the early Asia trading hours and after the London open, the USD/INR exchange rate was seen quoted within a tight range of 71.09 — 71.22. Currency traders are looking ahead to the US NFP job report to give more clarity to the price action.
Thursday’s trading session saw the USD/INR exchange rate fluctuate within the range of 71.52 — 71.08. The dollar index, which gauges the greenback’s strength against a basket of major currencies continued on its downward path and settled at 97.39, registering an additional -0.20% loss.
The Reserve Bank of India (RBI) policy members vote unanimously to keep interest rate unaltered at 5.15%. Most major central banks around the world are intensifying their easing efforts, which should motivate the RBI to continue in its easing cycle until signs of economic revival are seen. The central bank also slashed its GDP forecast for fiscal year 2019-2020 from 6.1% to 5%.
Asian markets have experienced a relief rally following the positive gains in the US equity market. The benchmark index S&P 500 was seen quoted as high as 3127.50 as the risk sentiment improved after the trade war rhetoric eased.
India’s central bank surprised the Asian markets and kept its benchmark interest rate at 5.14%, despite many Wall Street analysts forecasting the RBI to slash rates by another 25 basis points to 4.90%. The market was expecting the RBI to ease further amid apathetic economic growth, which slowed down to its lowest level in six years.
The domestic benchmark equity index NIFTY 50 followed the lead of the US index and recovered some of its early losses settling at 12018. During early Asia trading hours, NIFTY 50 was seen quoted lower at 11958. The Indian 10-year government bond yield was seen quoted at 6.65 versus 6.61 previous closing prices.