USD/INR: Indian Rupee Boosted as Feds Hints to a Pause in 2020

Indian Rupee rallied against the greenback after the US Federal Reserve hinted that it will halt the interest rate cuts through 2020. On the currency market, the value of Rupee continued to appreciate by 10 paise settling at 70.66 against the US dollar.

Wednesday’s trading session saw the USD/INR exchange rate fluctuate within the range of 70.89 — 70.55.

During the early Asia trading hours and after the London open, the USD/INR exchange rate was seen quoted within a tight range of 70.71 — 70.59. The dollar index, which gauges the greenback’s strength against a basket of major currencies, inched further into negative territory settling at 97.12, a 5 month low.

In other news, the US Federal Reserve kept its benchmark interest rate unchanged at 1.75% and signaled no desire to cut rates in 2020. On Wednesday, Fed Chairman indicated that they will keep an eye on the trade tension risks as well as the subdued global growth.

The GDP forecast for 2019 was projected at 2.2%, while Fed’s favorite measurement of inflation PCE was lowered to 1.6% at the end of 2019 compared with the 1.8% previous projection.

Elsewhere, the Asian Development Bank (ADB) followed the lead of the FMI and slashed its growth forecast for the Indian economy down to 5.1% versus 6.5% previous forecast for the fiscal year 2019 — 2020. At the same time, ADB also sees growth to pick up to 6.5% in response to RBI’s easing measures to boost the economy.

The downward trajectory in the GDP reading also follows the Reserve Bank of India own assessment, which revised down its GDP outlook 5.0%.

The domestic benchmark equity index NIFTY 50 closed on a positive tone during Wednesday’s trading session and settled at 11910, registering a +0.45% gain. Year-to-date the Indian stock market has gained 10.09%, benefiting from foreign investment inflow.

During early Asia trading hours, NIFTY 50 was seen gaping higher and quoted at 11977. The Indian 10-year government bond yield was seen quoted at 6.79 versus 6.76 previous closing prices. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.