The Indian Rupee is hovering close to the lows for the year. The rupee started Thursday’s session at 83.282, marking a slight decrease of 0.08 compared to its previous closing rate of 83.35. Presently, the US Dollar/Indian Rupee FX Spot Rate stands at 83.2725, experiencing a marginal decline of 0.093%. Concurrently, the US Dollar Index (DXY), a gauge assessing the dollar’s strength against six major foreign currencies, is showing a decrease of 0.42%, reaching a value of 102.43.
“The USD/INR 27th December futures contract has been consolidating within a narrow range for an extended period. Based on the daily technical chart analysis, the pair is currently trading above its moving average trend-line support level of 83.36, and the RSI is holding above the 50 level. Despite these positive indicators, the MACD is exhibiting a positive divergence, indicating potential upward momentum. However, the pair remains range-bound. According to the daily technical chart, the pair has a support zone between 83.35-83.15, while resistance is observed in the range of 83.55-83.85,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“Although the pair has been confined within a tight range for an extended period, it is encountering significant resistance at higher levels. To capitalise on the current market
Dollar slides as Fed Signals end to hawkish stance
The Federal Reserve left interest rates unchanged on Wednesday and US central bank chief Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected and with a discussion of cuts in borrowing costs coming into view, according to Reuters. “People are not writing down rate hikes” in their latest economic projections, Fed Chair Jerome Powell said in a press conference following the end of the central bank’s final policy meeting of the year.
A dovish US Federal Reserve outcome prompted investors to price in more rate cuts next year, fuelling a plunge in US Treasury yields and the dollar. Before the announcement, the market expected a 110 basis point rate cut. The chance of a rate cut in March increased, causing US stocks to rise, with the Dow Jones reaching a record high. The 10-year US Treasury yield fell below 4%, and the dollar index dropped by nearly 1% on Wednesday.