Rupee gains against US dollar on dovish Fed1 min read . Updated: 31 Jan 2019, 09:44 AM IST
- Overnight, the Federal Reserve signaled it is done raising interest rates for at least a while
- Other Asian markets are also trading higher against US dollar
Indian rupee on Thursday strengthened along with its Asian peers against US dollar after a dovish Federal Reserve signaled a prolonged pause in its latest policy statement. At 9.15 am, the rupee was trading at 70.91 a dollar, up 0.3% from its previous close of 71.13. The home currency opened at 70.92 a dollar.
Overnight, the Federal Reserve signaled it is done raising interest rates for at least a while and will be flexible in reducing its bond holdings. Traders will now focus on jobs data which will be out on Friday.
Domestically, traders awaiting fiscal deficit data for April-December and revised annual gross domestic product (GDP) estimate for fiscal year 2018 due later on Thursday. Traders will also remain cautious ahead of interim budget on 1 February.
So far this year, the rupee has declined 1.88% against the US dollar, while foreign investors have sold $496.10 million and $292.60 million in the equity and debt markets respectively.
The 10-year bond yield was trading at 7.31% from its Monday's close of 7.325%. Bond yields and prices move in opposite directions.
Asian currencies were trading higher against the US dollar. Indonesian rupiah was up 0.62%, South Korean won 0.48%, Malaysian ringgit 0.42%, Philippines peso 0.35%, Thai Baht 0.21%, Japanese yen 0.2%, China renminbi 0.16%, Taiwan dollar 0.1%, and Singapore dollar 0.08%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.34, down 0.48% from its previous close of 95.821.
(Bloomberg contributed this story)