Inr Sees Modest Gains As Local Stocks Stay Supported

Indian Rupee edged up today, appreciating despite a firm undertone in the US dollar index as continued policy support kept sentiments buoyant for the local currency. Yesterday, the Reserve Bank of India has eased interest rate rules for overseas deposits. This move is set to allow banks to offer better returns on FCNR(B) and NRE accounts and will likely attract more foreign funds in coming months. INR held near five-week high following this and added 9 paise at 94.40 per US dollar.

The key domestic indices ended with moderate gains on Thursday, extending gains for fifth consecutive trading session, supported by easing crude oil prices and improving global sentiment. Investors’ confidence boosted after US President Donald Trump signed a memorandum of understanding (MoU) with Iran aimed at ending the conflict, easing geopolitical concerns.

Meanwhile, the US dollar index surged above 100 mark yesterday to hit two and half month high following a slightly hawkish tilt displayed by the US Fed in its latest monetary policy meeting.

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