RTTN:Indian Rupee Rises To 4-day High Against US Dollar
The Indian rupee edged higher against its US counterpart on Tuesday morning as domestic equities rallied ahead of the closely-watched two-day meeting of the U.S. Federal Reserve beginning later in the day. The rupee touched a 4-day high of 54.2550, up by more than 0.2 percent from Monday's close of 54.3750.
Despite a brief correction in early December, the rupee has been steadily gaining against the dollar since it reached a fresh 2-month low of 55.8755 in late November. The near-term bias for the rupee is bullish above the 54.0 level, the point which was unsuccessfully challenged last week and a move beyond this mark could set its strongest level in more than a month.
The U.S. Fed will publish its forecasts for economic growth, unemployment, inflation and the future path of interest rates at the end of a two day meeting. Also, with Operation Twist program expiring at the end of the month, the central bank may announce a new asset-purchasing program in its continuing efforts to stimulate growth and add liquidity to financial markets.
Closer home, investors eagerly await October industrial output data, due out on Wednesday, and monthly inflation figures, which will be released on Friday, for clues to the mid-quarter monetary policy review on December 18. The benchmark BSE Sensex is currently up 193 points or a percent at 19,603, while the broader Nifty index is at 5,965, up 56 points or 0.95 percent from its previous close.
