Indian rupee opens at 66.39 against US Dollar

April 28, 2016 15:46

The Indian rupee today, against US dollar, opened higher by 5 paise at 66.39/$, as against the previous close of 66.44/$.

Indicating that the policy process normalization will be a gradual one, on the global front, Fed decided to maintain status quo on the interest rates.

The central bank, before taking a call on the interest rate trajectory, has mentioned that, it will monitor inflation parameters and the global developments.

Coming to the economic front, Fed elaborated that although labour markets have witnessed improvement, household spending has moderated.

Fed again did not concentrate on how it perceives the balance of risks to the economic outlook. On the whole, the policy stance is inferred to be dovish and so, the US dollar is losing its ground.

BOJ (Bank of Japan) at its policy meeting, has kept the interest rates unchanged and also maintained the bond buying programme at 80 trillion Yen. So, the Yen is receiving good appreciations.

This has come as a surprise, as investors earlier priced in a strong probability of BOJ, unleashing more monetary stimulus.

The economy is struggling from abysmally low growth and requirement of the Central bank's assistance can be identified.

As of now, Yen is trading at 109.3 levels, which is being considered as a strong recovery, from the low of 111.88 registered, just a few minutes before the monetary policy announcement.

On Tuesday, the Indian currency ended at 66.52/$ and took 8 paise hike on Wednesday, showing the figure as 66.44/$. The local unit had hit a high of 66.74 and a low of 66.83.

As per the Reserve Bank of India, the reference rates are as follows: