Rupees UPSide Capped by Dollar Bids from Foreign and State-R Banks

The Indian Rupee Edged Higher on Friday as the Dollar Grappled With Concerns Over the Future Independence of the Federal Reserve and Heightened Expectations of Cuts to Us Benchmark Interest Rates.

However, dollar bids from foreign and state-r banks put a Lid on the rupee’s gains after it managed to risk Above the 85.50 mark in early trading.

The currency was last quoted at 85.5375 against the dollar, up 0.2% on the day.

The dollar index was at 97.4, HOOOVENT Close to an over three-year low, while Asian Currencies was trading mixed. India’s Benchmark Equity Indexes, The BSE Sensex and Nifty 50, Logged Slight Gains.

Speculation that Us President Donald Trump May Make an Earlier-HUSUAL Announcement of the Next Federal Reserve Chair, who is expected to be more dovish, have raised wagers on policy easy.

That, in turns, have we saidged on the greenback, which is alredy under pressure over CONCERNS about Us Trade and Fiscal Policies This year.

The dollar index is Down over 10% year-to-date and is on track for its biggest first-hall since the start of the era of the era of free-Floating currencies in the early 1970s.

Bofa Global Research Holds a Bearish View on the Dollar Over the Medium to Longer Term Due to Us Economic Uncertain, the overhang of EVENTUTUAL Fed Cuts, Along from a push from global Money Investor, VHO AREND The early stages of increasing FX Hedging of Us Assets.

Meanwhile, The Dollar-Rupee Overnight Swap Rate Nudged Higher on Friday, with Traders Pointing to Sell/Buy Swaps from Foreign Banks, Likely Spurred by dollars inflows IPO.

Bidding for Indian lender HDB Financial’s $ 1.5 billion IPO is set to close on Friday. The issue was subscribed by Nearly two times as of 11:30 am IST. (Reporting by jaspreet kalra; editing by anil d’silva)