Rupee Steady Ahead Of Fed Minutes, Election Outcome

Rupee Steady Ahead Of Fed Minutes, Election Outcome

21 May 2019 10:20 AM

The Indian rupee was little changed against the dollar in early trade, as investors remained on sidelines ahead of the Federal Reserve’s minutes due tomorrow and federal election outcome at home due later this week.

The rupee changed hands at 69.74 against 69.7350 at the previous close. The local unit opened unchanged and has traded in an 11 paisa band so far.

Risk-off rally in global markets is adding pressure on the rupee. However, domestic sentiments remain upbeat on expectations of the ruling government returning to power. Rupee is expected to consolidate in narrow band today and tomorrow ahead of the Fed minutes and final decision of India’s federal polls.

The dollar index traded 0.07% higher at 98.00, awaiting further cues on interest rate policy by the U.S. authority in its minutes of the latest meeting due tomorrow.

Atlanta Fed President Raphael Bostic yesterday said he does not expect an imminent interest rate cut. Meanwhile, Federal Reserve Chair Jerome Powell said yesterday the inflation dynamics in U.S. has changed nowadays due to globalisation, technology and other factors and the authority is still working to understand.

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