INSUBCONTINENT EXCLUSIVE:
Rupee rose to a two months high riding mainly on a cautious approach by US Federal ReserveThe rupee rose to its strongest in two-and-a-half
convertible rupee was trading at 73.48/49 per dollar at 0612 GMT after touching 73.39 earlier, its strongest since June 16
The currency had closed at 73.68 on Friday.The dollar loitered around multi-week lows in the wake of Fed Chair Jerome Powell laying out a
slower-than-expected path to rate hikes, as traders' focus shifted to United States jobs figures due on Friday for clues on a tapering
timeline."Powell re-emphasised that the pace of the asset purchase programme could slow by the end of the year
However, he refrained from providing an exact timeline
A turn in the interest rate cycle remains far," HDFC Bank economists said in a note."We expect further near-term downside in the dollar,
setting lower-than-expected cut-off yields.On the domestic front, traders will now focus on the June quarter GDP data that is due to be
released on Tuesday for clues on the economic revival and to gauge a possible timeline on the RBI's policy normalisation.However, Governor
Shaktikanta Das told a local news channel last week that the central bank will not surprise the market with any sudden measures and that all
measures will be cautious and well calibrated.
