Forex

Rupee gains 4 paise to 74.80 against US dollar ahead of Fed policy

PTI Mumbai | Updated on July 29, 2020 Published on July 29, 2020

The rupee gained 4 paise to settle at 74.80 against the American dollar on Wednesday tracking weakness in the greenback.

At the interbank forex market, the rupee traded in a narrow range. It started the day at 74.83 and closed at 74.80, up 4 paise over its previous closing of 74.84 against the US dollar.

The USD-INR spot traded in a very narrow range of 74.75-75. US Fed’s policy outcome, scheduled to be announced later in the day, will provide some clarity over the trend, said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

On Fed’s policy decision, Gupta said, “We don’t expect a rate action. If the-policy turns out to be ultra easy then we can see some fall in dollar index and may get reflected in USD-INR spot.”

Gupta further suggested that “the policy will be reiteration of past measures. So, 74.50 will keep acting as a crucial support while 75 will act as an immediate resistance. Unless 75 breaks, we will see the spot trading in between 74.50-75.”

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.24 per cent to 93.47.

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Published on July 29, 2020
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