Indian Rupee edged up today, appreciating despite a firm undertone in the US dollar index continued policy support kept sentiments buoyant for the local currency. Yesterday, the Reserve Bank of India has eased interest rate rules for overseas deposits. This move is set to allow banks to offer better returns on FCNR(B) and NRE accounts and will likely attract more foreign funds in coming months. INR held near five-week high following this and currently trades up 11 paise at 94.38 per US dollar. INR edged up even as the US dollar index surged above 100 mark to hit two and half month high following a slightly hawkish tilt displayed by the US Fed in its latest monetary policy meeting. The Federal Reserve held the benchmark interest rate steady at 3.50% to 3.75% on Wednesday but hinted at rising borrowing costs later this year. New quarterly projections showed nine Fed officials now anticipate a rate hike by the end of 2026. Fed Chair Kevin Warsh, in his first press conference as head of the central bank, noted that inflation has remained above the Fed's 2% target and reiterated the central bank's commitment to restoring price stability.
Powered by Capital Market - Live News