Following its recent trend, the Indian rupee gained 7 paise to 83.24 against the US dollar (Dh22.68) on Wednesday due to a decrease in U.S. Treasury yields prior to the Federal Reserve minutes.
The currency ended Tuesday at 83.3050 versus the US dollar, up a little from 83.3350 on Friday. The dollar/rupee exchange rate fell from 83.50 on Friday and continued to decline on Tuesday. Forex traders said that outflows of foreign funds and negative sentiment in the domestic equity market were the reasons behind the rupee’s resistance.
As investors awaited the release of the Fed’s most recent meeting minutes, the majority of Asian currencies saw a slight increase, the dollar index declined, and U.S. Treasury yields decreased.
During that meeting, the Fed acknowledged the higher inflation readings in the January–March quarter, but it also indicated that it is still leaning towards lowering borrowing costs.
The currency faced resistance, according to forex traders, because of the negative sentiment in the domestic equity market. After closing at 83.3350 on Friday, the currency ended Tuesday at 83.3050 versus the US dollar. The dollar/rupee pair saw a decline on Friday that started at 83.50 and continued to decline on Tuesday.
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