Indian rupee climbs against UAE dirham on bets US Fed will end rate hikes

Indian rupee climbs against UAE dirham on bets US Fed will end rate hikes

The Indian rupee climbed on Thursday on expectations that cooling inflation in the US will allow the Federal Reserve to pause interest rate hikes soon. Rupee opened at around 82-82.05 to the US dollar (Dh22.34 to Dh22.36) compared with 82.24 (Dh22.40) in the previous session. The local currency has now almost recouped all the losses it suffered last week. "Having talked of an upside breakout (for USD/INR) last week, this has been quite a turnaround," a fx trader said. "We are now back to discussing whether the 81.70-81.80 is the floor." The Reserve Bank of India has likely been buying dollars at around the 81.70-81.80 level through public sector banks, prompting interbank to reckon that USD/INR will not fall below that level. The dollar index tumbled to their lowest in more than a year and US yields dropped after data showed that US inflation slowed at a faster-than-expected pace. US consumer prices registered their smallest annual increase in more than two years, with headline CPI rising 0.2 per cent last month compared to 0.3 per cent expected. Core CPI increased 0.2 per cent in the month, the first time in six months that it did not post a monthly increase