The Indian rupee was barreling toward a second-straight month of advances against the world's reserve currency on Thursday, prompted higher on the last day of October by the decision by the U.S. Federal Reserve to leave its economy-spurring asset purchasing intact, Bloomberg reports.
Following two days of policy meetings that adjourned on Wednesday, the U.S. Federal Reserve decided to leave its stimulus program unchanged. Two officials with the Reserve Bank of India said the financial institution is in a position to climb from offering concessional swaps in exchange for greenbacks.
The central bank of India boosted the repurchase rate from 7.5 percent to 7.75 percent earlier this week as part of an effort to confront challenges posed by inflation. But the central bank also slashed projections for growth and development through March of next year to 5 percent, pulled down from 5.5 percent.
Though the rupee fell about 0.1 percent against the greenback on Thursday, its gains in October against its rival about to roughly 2.1 percent.
The rupee's slight slippage on the final day of the month is correlated with importers' rising demand for the greenback, according to The Economic Times.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.