6 days ago
- Business
- Business Standard
INR settles higher, Powell speech in focus
The Indian rupee appreciated 16 paise to settle at 85.39 (provisional) against the US dollar on Monday, supported by a weak American currency and on expectations of a further reduction in key interest rate by the Reserve Bank. The US dollar index sank under 99 mark on Monday amid renewed trade tensions between the United States (US) and China after the US President Donald Trump claimed on Friday that China had violated their trade agreement. The dollar index that measures the greenback against a basket of currencies is quoting at 98.63, down more than half a percent. Investors now await US Fed Chair Jerome Powell's speech and US ISM Manufacturing PMI for May. Powell will be speaking at the Federal Reserve Boards International Finance Division 75th Anniversary Conference in Washington. While INR rose today, a sharp gain in the local unit was prevented due to volatile equity markets, outflow of foreign funds and higher crude oil prices. RBI's Monetary Policy Committee (MPC) will begin the deliberations on its next bi-monthly policy on June 4 and the outcome is scheduled to be announced on June 6.
