Hawkish Fed policy strengthens greenback against most Asian currencies, dollar index rises
The Indian rupee slipped 33 paise to 73.65 against the US dollar in early trade on Thursday amid the strengthening of the greenback in the overseas market.
At the interbank foreign exchange, the domestic unit opened at 73.65 against the dollar, registering a decline of 33 paise over its previous close. On Wednesday, the rupee had settled at 73.32 against the dollar.
The rupee started on a weaker note on Thursday as the dollar surged after a hawkish statement from the US Federal Reserve, Reliance Securities said in a research note. Most Asian currencies opened weaker against the greenback on Thursday, the note said, adding that the Reserve Bank of India could be present to curb volatility in the markets.
Global oil benchmark Brent crude futures meanwhile fell 0.60 per cent to $73.94 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies rose 0.29 per cent to 91.39.
“The Indian currency is making the higher-high-lower-low candle stick pattern which shows that the positive momentum will continue in the currency. The overall sentiment looks bullish as the domestic stock market is attaining stability at higher levels with acceptable corrections and this is helping currency pair in a broader sense,” Kshitij Purohit, Lead, International and Commodities at CapitalVia Global Research Limited.
“A closing above 73.60-73.65 zone could push down prices to next support zone of 73.80 levels,” Purohit said.