The dollar index rose to 104.08, tracking U.S. yields. The two-year Treasury yields, resuming trade following Monday's U.S. holiday, climbed to 4.68%. (Reporting by Nimesh Vora; Editing by Sohini Goswami)
By Nimesh Vora
MUMBAI, Feb 21 (Reuters) - The Indian rupee was barely
changed to the U.S. dollar on Tuesday despite its weak Asian
peers, on expectations that the local currency remained well
supported at near to current levels.
The rupee was at 82.7475 to the dollar at 10:08
a.m. IST, almost unchanged from 82.7225 in the previous session.
The offshore Chinese yuan was down 0.3% to the dollar, the
Thai baht declined 0.6% and the Indonesian rupiah fell 0.2%.
The Reserve Bank of India's likely intervention has
contributed to the rupee's recent price moves.
USD/INR is in a narrow range and with no major economic
releases in store for the next few days, this is unlikely to
change, said Srinivas Puni, managing director at QuantArt Market
Solutions.
The minutes of the Federal Reserve's latest policy meeting
can change this if they deviate from what the central bank
officials have been saying, Puni added.
Fed officials have been mostly quite hawkish in recent days
with two policymakers advocating the possibility on a 50 basis
points rate hike to tackle inflation.
Economists, meanwhile, have revisited their estimates of the
Fed peak rate and inflation forecasts.
BofA Securities in a note last week said it was revising its
U.S. inflation outlook higher.
"We add a 25 basis points rate hike in June from the Fed for
a new terminal of 5.25-5.5%. We maintain the first rate cut in
March 2024," BofA said.
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