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The post Indian Rupee weakens against US Dollar on receding Fed dovish bets appeared com. The Indian Rupee (INR) opens on a negative note against the US Dollar (USD) on Thursday. The USD/INR pair jumps to near 88. 80 as the US Dollar (USD) outperforms its peers, following the release of the Federal Open Market Committee (FOMC) minutes of the October policy meeting on Wednesday. In the policy meeting, the Fed decided to cut interest rates by 25 basis points (bps) to 3. 75%-4. 00%. At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, revisits an over five-month high of around 100. 40. The FOMC minutes showed that few policymakers would have been satisfied even if interest rates were held steady, as the outright rate cut for the second time in a row could stall progress in inflation returning to the central bank’s 2% target. Over the December policy meeting, officials were divided about reducing interest rates again, citing that further monetary expansion could boost inflation expectations and dampen households’ trust in the central bank’s commitment to bring inflation lower to the 2% target in a timely manner. Remarks from many Fed officials pointing to a pause in the monetary expansion cycle have resulted in a further reduction in bets supporting an interest rate cut in December. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3. 50%-3. 75% in the December meeting has diminished to 32. 8% from 50. 1% seen a day before the FOMC minutes release. Daily digest market movers: Investors await US NFP data for fresh cues on current status of labour market A strong opening by the USD/INR pair on Thursday is also driven by weakness in the Indian Rupee. The Indian currency has come under pressure as investors turn anxious over the delay in the announcement. Continue reading Indian Rupee weakens against US Dollar on receding Fed dovish bets→