Rupee edges lower as dollar firms on Fed hike bets
· Business · Reuters, Economic Times
The rupee edged lower against the dollar as traders priced in a higher chance of another Federal Reserve rate increase. The Federal Reserve, based in Washington, is expected to keep its benchmark rate unchanged at its meeting on February 18-19. Traders expect a 45% chance of a 25 basis point hike at that meeting, up from 34% on Thursday. The dollar index gained 0.2% to 102.919, while the dollar rose against most major currencies.
Why it matters
Indian importers face higher dollar costs, while a stronger dollar can pressure the rupee and add to inflation. The change is modest, and the impact on Indian consumers and businesses remains limited.
Read the original report — Reuters
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