Rupee extends dream run, zooms 47 paise to 65.22 post US Fed rate hike
NEW DELHI: The rupee extended its winning run in late morning trade as it was up by 47 paise at 65.22 on Thursday after the US Federal Reserve raised interest rates for the second time in three months. According to market experts, the expectation of rate hike was already factored in by markets.
The local currency had opened nearly 30 paise higher at 65.39 against dollar.
Meanwhile, the domestic equity market opened in the green following firm global cues. The BSE Sensex opened 84.72 points, or 0.29 per cent, up at 29,482.83, while the NSE Nifty index opened 44.85 points, or 0.49 per cent, up at 9,129.65.
Anindya Banerjee, currency analyst, Kotak Securities said, “Rupee will appreciate further as markets have already factored in the US rate hike expectations. At present, structural re-rating of currency coupled with improved interest rate differential between India and America, lower inflation expectation and favourable risk premia in the form of political stability are supporting the currency. It will continue to strengthen further and the currency can touch 64.60-level against dollar in coming trading sessions.”
The local currency closed at a fresh 16-month high of 65.69 on Wednesday as exporters aggressively offloaded the US currency ahead of the Fed meet outcome.
According to Angel Broking, USDINR spot appreciated on Wednesday as markets still cheer BJP’s massive victory in the major state election which has led to positive sentiments in the Indian markets.
“In Thursday’s trading session, rupee spot is expected to trade sideways to positive in spite of the indication of three more rate hikes by the US Fed in yesterday’s FOMC meeting,” Angel Broking said.
Foreign portfolio investors stood net buyers in domestic equity markets on Wednesday as they bought shares worth Rs 4309.49 crore on Wednesday with gross purchases and gross sales of Rs 10,237.09 crore and Rs 5,927.60 crore, respectively.
On a month-to-date basis, the rupee has advanced nearly 2.1 per cent till date, while the currency has gained 3.9 per cent this calendar year.
The local currency had opened nearly 30 paise higher at 65.39 against dollar.
Meanwhile, the domestic equity market opened in the green following firm global cues. The BSE Sensex opened 84.72 points, or 0.29 per cent, up at 29,482.83, while the NSE Nifty index opened 44.85 points, or 0.49 per cent, up at 9,129.65.
Anindya Banerjee, currency analyst, Kotak Securities said, “Rupee will appreciate further as markets have already factored in the US rate hike expectations. At present, structural re-rating of currency coupled with improved interest rate differential between India and America, lower inflation expectation and favourable risk premia in the form of political stability are supporting the currency. It will continue to strengthen further and the currency can touch 64.60-level against dollar in coming trading sessions.”
The local currency closed at a fresh 16-month high of 65.69 on Wednesday as exporters aggressively offloaded the US currency ahead of the Fed meet outcome.
According to Angel Broking, USDINR spot appreciated on Wednesday as markets still cheer BJP’s massive victory in the major state election which has led to positive sentiments in the Indian markets.
“In Thursday’s trading session, rupee spot is expected to trade sideways to positive in spite of the indication of three more rate hikes by the US Fed in yesterday’s FOMC meeting,” Angel Broking said.
Foreign portfolio investors stood net buyers in domestic equity markets on Wednesday as they bought shares worth Rs 4309.49 crore on Wednesday with gross purchases and gross sales of Rs 10,237.09 crore and Rs 5,927.60 crore, respectively.
On a month-to-date basis, the rupee has advanced nearly 2.1 per cent till date, while the currency has gained 3.9 per cent this calendar year.
