Indian rupee eyes mild relief with Asian peers buoyed by 'modestly' dovish Fed

Business Recorder reported that the Indian rupee could make a modest gain at Thursday’s open, following advances in most Asian currencies after markets viewed the Federal Reserve’s rate decision and Chair Kevin Warsh’s remarks as somewhat dovish. Traders expected the rupee to begin in a 95.14-95.18 range, compared with Wednesday’s close of 95.22 per dollar. The Fed kept rates unchanged, while two policymakers preferred an increase; some analysts had expected more dissent in favour of a hike.

The dollar index and yields on two-year US Treasuries declined, supporting regional currencies, although markets still assigned an over 80% probability to a December Fed hike. A weaker dollar could ease pressure on the rupee, which has also been weighed down by Brent crude near $115 a barrel. The Reserve Bank of India sold dollars before Wednesday’s market opening, and a 95.25-95.30 level remains a key resistance area for the dollar-rupee pair, according to Finrex Treasury Advisors’ Anil Bhansali.