A day after rupee surged to a Sixteen-month high on higher expectations of bold reforms, it today made a positive start by rising 9 paise to 65.73 against the U.S dollar, backed by foreign inflows. Selling of the dollar by banks and exporters and its weakness overseas along with a higher opening in the domestic stock market fuelled rupee uptrend.
On Tuesday, 14 March 2017, the rupee had jumped a massive 78 paise to end at 65.82, a nearly 18 months high, amid expectations that BJP’s stunning victory in Uttar Pradesh will embolden the government to go for more reforms.
The dollar was on tenterhooks in Asian trading today as investors waited worriedly to see what indication the U.S. Fed Reserve would soon expose on its monetary policy outlook. The U.S central bank commenced its 2-day monetary policy meeting on Tuesday. With the futures market pricing in more than a 90% possibility that it would raise interest rates, however investors’ mainly focus on to what its statement would say about the pace of hikes this year.
Meanwhile, at 12.50 pm the benchmark BSE Sensex was down 16.57 points, at 29,426.06 while the Nifty up 4.05 points at 9,091.05