India Rupee – Asia FX: Most units down as FOMC signals tapering soon
MUMBAI – Most Asian currencies were down in early trade today because the dollar remained firm globally after the US Federal Reserve said it would begin tapering asset purchases soon.
At 0925 IST, the dollar index was at 93.40 compared with 93.46 on Wednesday. It was at 93.20 on Tuesday.
Although the Fed’s rate-setting committee had not made a formal decision on how quickly to reduce asset purchases, at the post-meeting press conference, Fed Chair Jerome Powell said that most members agreed that a gradual process “that concludes around the middle of next year is likely to be appropriate.”
Members of the Federal Open Market Committee also brought forward their expectations of interest rate hikes, and they now see interest rates rising in 2022 itself.
Despite a slightly hawkish stance by the US central bank, Asian currencies remain supported, and were down only 0.1-0.2% as investors were relieved by reports that China may have entered an agreement with its second-largest real estate player Evergrande to restructure its liabilities worth over $300 bln.
Reports that Evergrande will meet coupon payment today on an onshore bond also improved risk sentiment in Asian markets. (Richard Fargose)
India Rupee: Expected range for rupee – Sep 23
MUMBAI – The following are the expected support and resistance levels for the rupee, as forecast by leading banks and brokerages in an Informist poll:
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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