Indian rupee posts strong gains against UAE dirham, Pakistan rupee slumps
Indian rupee today staged a strong rebound, posting its biggest single-day gain in nearly a month and a half. A pullback of the greenback from recent peaks while dollar inflows also aided the Indian currency. Pakistan’s rupee declined to a new low amid the country's deteriorating external finances.
The spot Indian rupee today closed at 82.9350 against the US dollar, up 17 paise from its previous close of 83.1075 on Monday.
The U.S. dollar index, which measures the currency against six developed-market counterparts, pulled back below Friday's 10-week high of 103.68. The Indian rupee today settled higher at 22.59 against UAE dirham.
The Pakistani rupee today fell to 81.39 against UAE dirham.
Likely Reserve Bank of India intervention, foreign portfolio investments (FPIs), including increased holding of GQG in Adani stocks, have supported rupee, said CR Forex Advisors in a note. Currency traders will be looking forward to Jackson Hole symposium of central banker later this week.
Fed Chair Jerome Powell's speech at Jackson Hole will be heavily scrutinised to gauge the likely path for interest rates. Powell's comments will come at a time when longer maturity U.S.
