Rupee opens flat at 66.92 against dollar as Yellen hints at March rate hike
The rupee opened on a flat note on Wednesday at 66.92 against dollar after Federal Reserve Chair Janet Yellen spoke in support of an interest rate hike next month.
The local currency on Tuesday recovered by 9 paise to end at 66.93 against dollar on fresh selling of dollars by banks and exporters amid weakness in American currency in the overseas market.
Yellen said on Tuesday that the Fed will probably need to raise interest rates at an upcoming meeting in March, and that delaying rate increases could leave the Fed's policymaking committee behind the curve.
Meanwhile, domestic equity markets opened in red following mixed global cues. The 30-share BSE Sensex opened 69.20points, or 0.24 per cent, down at 28270.11, while the 50-share NSE Nifty index opened 13.35 points, or 0.15 per cent, down at 8,778.95.
According to Nirmal Bang Commodities, rupee is expected to trade with a sideways movement during the day. “Trading in the expected intraday range of 66.92 – 67.18 is recommended,” the brokerage house said.
ICICIdirect.com in a research note said, “We expect the US dollar to find supports at lower levels. Utilise downsides in the dollar to go long on the US$INR pair.”
Government bonds fell for a second day on Tuesday, as a sustained rise in core inflation raised doubts over the next rate cut by the central bank’s monetary policy committee. The benchmark 6.97% 2026 bond yield rose to 6.88 per cent from 6.83 per cent in the previous day.
The local currency on Tuesday recovered by 9 paise to end at 66.93 against dollar on fresh selling of dollars by banks and exporters amid weakness in American currency in the overseas market.
Yellen said on Tuesday that the Fed will probably need to raise interest rates at an upcoming meeting in March, and that delaying rate increases could leave the Fed's policymaking committee behind the curve.
Meanwhile, domestic equity markets opened in red following mixed global cues. The 30-share BSE Sensex opened 69.20points, or 0.24 per cent, down at 28270.11, while the 50-share NSE Nifty index opened 13.35 points, or 0.15 per cent, down at 8,778.95.
According to Nirmal Bang Commodities, rupee is expected to trade with a sideways movement during the day. “Trading in the expected intraday range of 66.92 – 67.18 is recommended,” the brokerage house said.
ICICIdirect.com in a research note said, “We expect the US dollar to find supports at lower levels. Utilise downsides in the dollar to go long on the US$INR pair.”
Government bonds fell for a second day on Tuesday, as a sustained rise in core inflation raised doubts over the next rate cut by the central bank’s monetary policy committee. The benchmark 6.97% 2026 bond yield rose to 6.88 per cent from 6.83 per cent in the previous day.
