Rupee firms as signs of Fed slowdown boosts risk appetite

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MUMBAI: The Indian rupee edged higher as the dollar index tumbled on positive risk sentiment after minutes of the US Federal Reserve’s November meeting reaffirmed the likelihood of smaller-sized rate hikes.
The partially convertible rupee ended at 81.63 per dollar against its previous close of 81.8450. It held a narrow 15-paisa range throughout the session.
A break below 81.67 for the dollar/rupee pair signals that the 81.55 level could be attained, but it could be challenging as importers seem to be bidding around those levels, said a trader with a private bank.
The rupee’s range in the near term could be 81.40-81.90 per dollar due to a lack of major triggers leading up to the Reserve Bank of India (RBI) meeting on December 7, said Gaurang Somaiya, FX and bullion analyst at Motilal Oswal Financial Services.
Risk assets rallied in Asia as the Malaysian ringgit , the Thai baht and the…

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