On January 03, 2025, the Indian rupee traded at 85.79 to the U.S. dollar, up nearly 0.02% against 85.75 at the previous close yesterday. The currency depreciated by 2.8% in 2024, marking its seventh consecutive year of decline. The Indian Rupee hit an all-time low of 85.8075 last Friday.
In a recent data release, U.S. job data shows a robust labour market, with unemployment claims dropping to an 8-month low.
The Federal Reserve too has indicated that it will be more cautious in cutting interest rates as inflation remains above its 2% annual target and the economy remains strong.
This supports the dollar index which rose to 109.55 yesterday. During Asian trade today, the dollar index was down 0.05% at 109.17.
The US Federal Open Market Committee (FOMC) which decides on the US monetary policy will give its interest rate decision on January 29, 2025.
The expectation that the Fed will maintain higher interest rates for an extended period, along with anticipated policies from U.S. President-elect Donald Trump, has strengthened the dollar and U.S. bond yields lately.
But before that, Donald Trump will take charge as the US President in an iconic Inauguration event on January 20, with attention on how he addresses the pressing issues facing the nation and the world.
Brent crude futures are 0.3% up, at $76.1 per barrel as of January 3, 2025. Meanwhile, NSDL data revealed that foreign investors sold a net $69.7 million worth of Indian shares and Indian bonds valued at $9.7 million on January 1, 2025.
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