The Indian rupee pushed to its top value in one month on Thursday against the world's reserve currency in the aftermath of the U.S. Federal Reserve opting against asset purchases, Bloomberg reports.
Policy makers with the Fed, known as the Federal Open Market Committee, defied expectations and did not taper following two days of meetings that adjourned Wednesday afternoon. The Reserve Bank of India is likely to be influenced by the Fed decision, according to Reuters.
"A delay in the tapering agenda paves the way for the RBI to relook at the liquidity tightening measures put in place in July and possibly ease the restrictions," economist Radhika Rao with DBS in Singapore told Reuters on Thursday. "With the rupee already halving the losses seen from May to August, there might not be sufficient justification to keep those measures to place."
The subcontinent's currency surged about 2.7 percent, pushing to its top level since August 16.
Chairman Ben Bernanke said the body he leads is waiting on additional economic data to tighten policy, noting it does not want to stunt growth, Bloomberg reports.
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