Rupee rises to 82.42 as Asian currency against US Dollar

Rupee today On Friday we saw gains for the domestic currency as Asian currencies increased and the dollar index declined.

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On Friday, the rupee grew as Asian currencies increased and the dollar index fell as the slowdown in US consumer and business spending in the third quarter drove Treasury yields lower.

According to Bloomberg, the rupee last traded at 82.4150 to the dollar after starting the day at 82.3813, down from Thursday’s closing price of 82.5025.

The rupee increased 4 paise to 82.29 against the US dollar in early trade, according to PTI.

A Mumbai-based trader told Reuters that it is “increasingly clear” that the 82 to 83 level is likely “the new range” for the rupee.

“The Federal Reserve meet next week is a potential risk point, but we doubt it will have the impact of taking rupee out of this range,” added the trader.

While the domestic currency in the previous session notably increased to 82.15 in early trade, it quickly declined after that due to broad-based dollar demand from importers who were taking advantage of the rupee’s decline.

The European Central Bank’s less-hawkish suggestions also increased demand for American government bonds, and the Reserve Bank of Australia and the Bank of Canada opted to hike interest rates less than investors had anticipated.

Those reversals by central banks and the likelihood that the Federal Reserve would begin to slow the rate of hikes after its meeting next week have forced markets to reassess their expectations.