US Fed rate hike: Indian rupee holds steady for now at 21.25/Dh, but euro, pound slip

US Fed rate hike: Indian rupee holds steady for now at 21.25/Dh, but euro, pound slip

Dubai: The turmoil never happened in the global currency markets the day after. Sure, the dollar’s gained through the day, but the Indian rupee stuck to the range that was there before the Fed raised interest rates by another 0.75 per cent on Wednesday. “The rupee will remain soft, but the chances of its dropping down to 22 against the dirham immediately are marginal,” said K.V. Shamsudheen, Director at Burjeel Geojit Securities. On Thursday (June 16), the rupee kept at the 21.25 levels after having tested 21.30 earlier in the week. For Indian expats mulling their next remittances, nothing much has changed. The rupee remains stuck to above 21 to the dirham despite having endured two back-to-back hikes in the last seven days – the first by the Reserve Bank of India and then the US Fed. “The Fed hike by 75 bps was as per market expectations,” said a Senior Treasury Analyst with LuLu Exchange. “Hence the markets responded positively. Had it been a 1 per cent hike, the markets would have behaved in a bit more unpredictable manner. “This impact though is a momentary one and the real worry is remains the mounting inflation, geopolitical tensions, and supply