The Indian rupee surged by 21 paisa to 64.16 against the US dollar in the Foreign Exchange Market due to unchanged rates of US Federal Reserve which weekend the dollar globally and strengthened the Indian Currency.
The Federal Reserve policy statement speculated that this is a tepid inflation outlook and will not remain longer as forecasted in September, however, due to inflation Indian market has strengthened and the share market has been gauged in profit.
Further, a higher opening in the domestic equity market with key indices soaring to new highs further influenced the rupee uptrend.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.4208 and for the euro at 74.9214. In cross-currency trades, the rupee remained under immense pressure against the pound sterling. The local currency also firmed up.
The US dollar is lacking momentum ahead of the Federal Open Market Committee (FOMC) meet outcome and trade changed little against major world currencies while US political woes continued.
It was an historic moment for Indian markets as confident investors propelled the NSE- benchmark Nifty to close above the historic 10000 mark for the first time, while the nation’s most widely watched stock index, despite the sluggish inflation, The Federal Reserve policy has kept the dollar under pressure and led to uncertainty on whether the Fed will raise interest rates again this year.