- Fed signals tapering contingent to “maximum employment goal”
- Broad-based dollar weakness
- Globally, risk-sensitive currencies remain depressed
Indian Rupee strikes two consecutive days of gains. At the foreign exchange market, the value of the Rupee appreciated by 13 paise settling up 0.17% at 74.31 against the US dollar. During the Thursday morning trade, the USD/INR exchange rate was seen trading further lower within a trading range of 74.33 and 74.12.
While the US dollar sold off against its major counterparts, the Indian Rupee also took advantage of the broad-based dollar weakness to reach a four week high. The greenback remained weak against risk-sensitive currencies.
The Fed didn’t give a clear timeline for cutting down the bond-buying program but reiterated that they still have “some ground to cover” before the taper goal is reached.
The dollar index, which gauges the greenback’s strength against a basket of major currencies, settled down -0.25% at 89.83.
Elsewhere, according to the National Stock Exchange of India, domestic institutional investors (DIIs) were net buyers in the local equity market worth Rs 921.45 crore. At the same time, foreign institutional investors (FIIs) were net sellers in the local equity market worth Rs 2,274.77 crore on July 28.
The domestic benchmark equity index NIFTY 50 settled lower -0.24% at 15,709.40 on Wednesday. More, this morning trade saw NIFTY 50 almost unchanged at15,778.45.
The Indian 10-year government bond yield was seen settling at 6.188%.
Currently, one US dollar buys 73.16 rupees, down -0.21% as of 10:26 AM UTC.