Rupee witnessed an upward opening,
following signals from the US Federal Reserve indicating a shift toward
potential interest rate cuts in the coming year, on December 14.
At 9.10 am, the Indian currency was
trading at 83.30 a dollar, up 0.13 per cent from its previous close of 83.40.
After its two-day monetary policy
meeting, the Federal Reserve reviewed significant forecasts: 2024 median fed
funds target rate dropped to 4.6 per cent (from 5.1 per cent) and 2025 rate to
3.6 per cent (from 3.9 per cent).
Inflation projections moved to 2.4 per cent
for both PCE and core PCE from earlier estimates. GDP growth for 2024 adjusted
from 1.5 per cent to 1.4 per cent.
“Looking ahead, expectations for
stronger trading performances in emerging market equities and currencies
suggest the potential for the rupee to strengthen amidst these global shifts,” said
a businessman.
Asian currencies were trading higher.
South Korean won was up 2 per cent, Indonesian rupiah gained 1.1 per cent,
Taiwan dollar and Malaysian ringgit up 0.94 per cent each, Japanese yen 0.9 per
cent, Philippines peso 0.73 per cent, China Renminbi 0.57 per cent, Thai Baht
0.45 per cent, Singapore dollar 0.33 per cent.
The dollar index, which measures the US
currency’s strength against major currencies, was trading at 102.58, down 0.28
per cent from its previous close of 102.869.
Agency
