The Indian rupee little changed at 71.35 pair now at 71.28 against 71.23 previous close.
Pair to tip in 71.15-71.50 range today.
Dollar/rupee opened up Thursday tracking a strong greenback amid a hawkish commentary from Federal Reserve in its policy released on Wednesday. The spot opened up today on strong dollar. On Wednesday, the Federal Reserve cut interest rates by a quarter of a percentage point for the second time this year in a widely expected move meant to sustain a decade-long economic expansion, but gave mixed signals about further easing.
Global Currency
The dollar stood tall on Thursday after the U.S. Federal Reserve cut rates by 25 basis points, as expected, but its chairman signalled a higher bar for future rate cuts. Fed Chairman Jerome Powell described U.S. prospects as "favourable" and the rate move as "insurance." He did not rule out future cuts, but his remarks were not as dovish as markets had hoped for which lifted bond yields and the dollar. In the short term, this hawkish cut should still see the dollar well-bid, given that the path of interest rates outlined by the Fed is not close to that priced into the markets.
The dollar rose 0.3% on the euro EUR= after the Fed decision and steadied at $1.1027 on Thursday. It gave up some gains on the pound to hold around $1.2468.
Global Markets
Gold prices fell over 1% to a one-week low on Wednesday, pulled down by a lack of clarity on future monetary policy decisions after a widely anticipated interest rate cut by the U.S. Federal Reserve.
Oil prices edged higher in early Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia's pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.
