Rupee opens 6 paise higher at 64.24 against US dollar post US Fed meet

NEW DELHI: The rupee opened 6 paise up at 64.24 against dollar on Thursday after weak US inflation data overshadowed an interest hike by the Federal Reserve.

The local currency on Wednesday closed 3 paise up at 64.30 against dollar on sustained selling of the American currency by exporters.

Abnish Kumra Sudhanshu, Director and Research Head, Amrapali Aadya Trading & Investments said, “Rupee strengths to continue as inflation set to further soften with IMD forecasting normal monsoon ie, 98 per cent of the long term average and it has already arrived in some part of the country without delay.”

Meanwhile, domestic equity markets opened on a cautious note following mixed global cues. The 30-share BSE Sensex opened 66.98 points, or 0.21 per cent, up at 31,222.89, while NSE Nifty index opened almost flat at 9,617.90.

The US central bank on Wednesday increased interest rates to a range of 1 to 1.25 per cent as expected, and gave its first clear outline on its plan to reduce its $4.2-trillion bond portfolio. Fed policy makers also signalled they were likely to raise rates once more this year.

Government bonds rose for a second day on Wednesday. Domestic bonds would remain supported on sharp slide in US yields. The benchmark 6.97 per cent 2026 bond yield fell to 6.47 per cent from 6.49 per cent in the previous session.