India Rupee Feel Pressure As US Fed Likely To Hold Interest Rates

ENA Economy 2024-01-31 14:43:34 Mumbai, Jan 31 (KNN) The Indian rupee is anticipated to experience a slight decline following stronger-than-expected employment figures in United States. In the view Federal Reserve is unlikely to cut interest rate in March. Non-deliverable forwards suggest that the rupee will commence trading at approximately 83.12-83.14 against the dollar, compared to the previous session's 83.1050. Despite a narrow intraday range of 2 to 6 paisa over the last four sessions, forex traders remain cautious about any substantial movement. A forex trader at a bank noted, The rupee is back to the mode in which nothing will happen, predicting that the decline at the opening will not amount to much, and at maximum, we could see a move to 83.18. The likelihood of a March rate cut by the Federal Reserve dropped to 44 per cent as U.S. job openings unexpectedly increased in December. Additionally, a surge in the headline Conference Board consumer confidence to a two-year high underscored the resilience of the U.S. labor market. Just a month ago, investors were confident in a March rate cut by the Fed. However, recent data indicating the sustained strength of the U.S. economy and labor market has tempered these expectations. ING Bank noted, The market further priced out the chances of a March rate cut ahead of tonight's FOMC (Federal Open Market Committee) meeting. The focus now shifts to the Federal Reserve's upcoming meeting, with Chair Jerome Powell expected to provide insights into the March rate cut decision. Meanwhile, the dollar index is on the rise in Asia, with Asian currencies experiencing a 0.1 per cent to 0.5 per cent dip. (KNN Bureau) 36494 https://knnindia.co.in/news/newsdetails/economy/india-rupee-feel-pressure-as-us-fed-likely-to-hold-interest-rates 2024-01-31 14:43:34 knnindia.co.in India Rupee Feel Pressure As US Fed Likely To Hold Interest Rates