The Indian rupee opened stronger against the US dollar on Monday as the American currency came under pressure following Federal Reserve Chair Jerome Powell's Jackson Hole address that bolstered expectations for an interest rate cut at the September meeting.
The local currency appreciated by 8 paise to open at 83.82, according to Bloomberg data. It had closed at 83.90 on Friday.
The rupee is expected to be in the range of 83.75-83.95, with the Reserve Bank of India buying dollars at lower levels of the pair and selling near 83.95, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
The dollar index, which tracks its performance against a basket of 10 leading global currencies, fell 0.18% to 100.53, as it lost to yen. The index hit its lowest level since July 2023 for first time on Friday.
Last week, Powell's highly anticipated speech boosted expectations for an interest rate cut at the Fed's upcoming meeting on Sept. 17-18. "The time has come for policy to adjust," Powell had said.
While the direction for policy changes is clear, the timing and pace of rate cuts will be guided by incoming data, the evolving economic outlook, and the balance of risks, he had emphasised.
Powell expressed increased confidence that inflation is progressing towards the Fed's 2% target, but noted a significant cooling in the labour market.
Meanwhile, international benchmark Brent oil was at $79.51, up 0.62%, as no Gaza ceasefire was in offering with fighting intensifying between Israel, Hamas and Hezbollah over the weekend.
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