Rupee Closes Flat Against Dollar Amid Unchanged US Interest Rates
The local currency ended flat at Rs 83.55 against the greenback.
The Indian rupee closed flat against the dollar on Thursday amid falling Brent crude prices and unchanged US interest rates.
The local currency ended flat at Rs 83.55 against the greenback, according to Bloomberg data. It had closed at Rs 83.54 on Wednesday.
The Federal Reserve kept rates at 5.25-5.5% and hinted at a "higher-for-longer" stance on inflation by reducing rate cut projections for 2024 from three to one. The dollar index was down to 104.77 and US yields were at 4.3120%.
Brent oil fell to $82.31 after rising to $83.35 per barrel on better-than-expected CPI report from the US, but pared its gains on report from IEA that oil demand will be lower in 2024, citing sluggish consumption from developed countries.
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"Following the Fed's announcement, market expectations for a rate cut at the September meeting surged to 71%, up from 53% the previous day," Amit Pabari, managing director of CR Forex Advisors, said.
"For USD-INR, 83.40 acts as a support while 83.60 a resistance," Kunal Sodhani, vice president of Shinhan Bank, said.
