Home Business Rupee mercury rises sharply to end at 82.47 on dollar demand from...

Rupee mercury rises sharply to end at 82.47 on dollar demand from importers

Rupee rose, but gave up sharp gains on Friday

The rupee on Friday gave up some of its sharp gains from earlier in the session, benefiting from dollar demand from domestic importers and hedging at a lower exchange rate, even as a mixed mood resulted in a fall in turbulent global markets.

Investors turning away from riskier assets to China and the broader global economy also did not help the domestic currency.

According to Bloomberg, the Indian currency was last changing hands at 82.47 per dollar after opening at 82.38 compared to Thursday’s close of 82.5025.

While the rupee strengthened in early trade, reaching around 82.29 against the greenback on Friday, importers once again bought the dollar and took the currency to 82.50.

Anil Kumar Bhansali, Head of Treasury at Finrex, said, “The dollar index rose to 110.87 and oil moved above $96 a barrel. Asian currencies were also consolidating, while the Chinese yuan was slightly lower.” Treasury Advisor.

“Markets are now waiting for the crucial Federal Reserve meeting on November 2 before which the rupee should strengthen between 82-83 levels,” he added.

The ECB’s scathing remarks stoked market views that central banks may ease the pace of monetary tightening, especially after the Bank of Canada shocked the market on Wednesday with a lower-than-expected rate hike.

According to Citi Strategists, markets have again started trading a Fed pivot, but this is defined as hiking in small increments, not as a “proper” pivot to cut from hikes. In, given that a real break is still some time away, Reuters reported.

Investors are now focusing on the Federal Reserve meeting next week.

While a rate hike of 75 basis points is almost guaranteed after the policy meeting on November 1-2, according to CME’s FedWatch tool, the probability of a rate hike of 50 basis points lower in December was 55 per cent.

“I don’t think there will be any surprises here (in terms of rate hikes), but it will be more on the message that the Fed will deliver,” Frank Benzimara, head of Asia equity strategy at Societe Generale, told Reuters. ,

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