Suryaa Business Desk: Due to moderate dovish stance followed by the US Federal Reserve, Asian currencies as well as the Indian rupee are likely to get a little relief... Market experts are predicting that the moderate dovish stance followed by the US Federal Reserve is likely to give some relief to the Asian currencies as well as the Indian rupee. The dollar index is under pressure in global markets as the US central bank gives positive signals on future interest rate cuts. Due to this, the foreign exchange (Forex) experts claim that a favorable environment is being created for the value of the rupee to strengthen along with the regional currencies of Asia.
In the context of international developments, movements in crude oil prices and investment patterns by foreign institutional investors play a vital role in dictating the course of the rupee. The main rallying point for Asian currencies is a slight slowdown in demand for the dollar due to the US Fed decision. However, economic analysts are analyzing that the continued withdrawal of foreign funds in the domestic equity markets and increased demand for dollars from the corporate sector are facing some obstacles to the rupee's gains. The Reserve Bank of India (RBI) intervenes in the market when necessary and takes firm measures to prevent sharp fluctuations in the rupee exchange rate.
In the coming days, the movements of the rupee will become more clear based on key economic data and monetary policy announcements from the US. At present, the market sources are hopeful that the rupee will get a slight relief on the strength of international positive signals.