After a gap down opening the Indian rupee has recovered but trading lower by 29 paise at 69.08 per dollar versus previous close 68.79.

The rupee has opened at the lowest level since June 27.

On July 31 the rupee has recovered from the lows and finished 6 paise higher at 68.79 against the US dollar ahead of the outcome of US Federal Reserve meeting.

The dollar-rupee August contract on the NSE was at 68.98 in the previous session. Open interest declined 9.84% in the previous session, reported ICICIdirect.

We expect the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions, it added.

Federal Reserve Chair Jerome Powell dampened expectations for further cuts following the central bank's first interest rate cut in a decade.

Investors were expecting the Fed's 25-basis point cut as insurance against signs of a looming economic slowdown amid the protracted U.S.-China trade war.

Published On : 01-08-2019

Source : Money Control