Indian Rupee Likely To Appreciate Against The Dollar

Indian Rupee Likely To Appreciate Against The Dollar

08 Apr 2021 09:24 AM

The Indian rupee is likely to inch higher against the U.S. currency following its worst session in more than one-and-half years.

The rupee is expected to change hands around 74.45 initially compared with 74.55 in the previous session.

The rupee yesterday suffered its biggest fall in 20 months as the RBI for the first time announced an explicit bond buying program to ensure that the expected increase in issuances do not lead to chaotic moves in yields.

Investor focus was on the minutes of the last U.S. Federal Reserve meeting, which were released yesterday.

The minutes of the March meeting were broadly dovish with policymakers noting that they would likely take time until substantial further progress was made towards the Fed’s employment and inflation targets and until then asset purchases would continue at least at the current pace.