India pushing Rupee as next global trade instrument
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The summary of the US central bank’s previous meeting released yesterday also showed a strong degree of caution over the timing of future interest rate increases.
This made the American currency lose its sheen further among banks and exporters.
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The dollar also gave up ground against other currencies overseas and a higher opening in domestic equities backed the rupee momentum.
Yesterday, the rupee had closed higher by 14 paise at 65.14 against the greenback after a steady dollar unwinding by exporters and corporates.
The benchmark Sensex rose by 112.53 points, or 0.35 per cent, to 31,946.52, in early session today.
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The rupee held its ground and rose 4 paise to 65.10 against the dollar on Thursday after the US Fed minutes signalled “patience in removing policy accommodation”.