The Indian rupee opened higher by 20 paise at 69.48 per dollar on Thursday versus previous close 69.68.

On June 19 the local currency ended flat at 69.68 against the US dollar ahead of the US Fed's interest rate decision.

Rupee consolidated in a narrow range ahead of the important FOMC policy statement that was released yesterday. In line with expectation the Federal Reserve maintained a status quo approach but signaled a possible rate cut in the near future, said Motilal Oswal.

The bulk of Fed policymakers slashed their rate outlook for the rest of the year by roughly half a percentage point, and Fed Chairman Jerome Powell said others agree the case for lower rates is building.

The greenback was weighed down against its major crosses after the release of a ‘Dovish’ statement. Inflation projection is lowered to 1.5% compared to previous projection of 1.8%. They also expect to miss their 2% inflation target next year as well, a blow for a central bank that has missed that goal for years. Today, USD-INR pair is expected to quote in the range of 69.20 and 69.90, it added.

Published On : 20-06-2019

Source : Money Control