Rupee slightly declines, against the US dollar

On June 15, the Indian Rupee was modestly worse versus the US Dollar, reflecting declines in Asian rivals. The rupee was trading at 82.18, down 0.1 percent from its previous close, after starting the day at 82.17.

Yesterday, the Federal Reserve temporarily suspended its record-breaking run of interest rate increases, giving the economy more time to adjust. As a result, the dollar experienced a slight decline. The US central bank signaled a substantial likelihood of additional rate hikes later this year, which helped the dollar halt its decline.

As traders considered the possibility of additional rate hikes in response to the Fed’s hawkish remarks, the dollar index rose for the first time in three days.

According to the CME Fed Fund Tool, the market has priced in a rate increase of 70% for July. According to economists, a further increase in probability across the short- to medium-term curve could pave the way for a stronger dollar. The conclusion of the European Central Bank’s (ECB) policy meeting later in the day will be anticipated by investors.

The market has already completely priced in an interest rate cut of 25 basis points (bps). For clues about the course of monetary policy, the comments made by ECB president Christine Lagarde and the publication of economic estimates will be widely watched.

After the dollar gained strength, Asian currencies decreased. The Japanese yen decreased by 0.65%, the South Korean won decreased by 0.44, the Thai baht decreased by 0.34, the Malaysian ringgit decreased by 0.32, and the Singapore dollar decreased by 0.23. The Philippines peso fell 0.2%, the Chinese renminbi 0.2%, the Indonesian rupiah 0.23 percent, and the Taiwan dollar fell 0.11 percent.

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