Rupee vs Dollar: Despite the weakness in other Asian currencies, the rupee opened 6 paise on September 30 before the monetary policy announcement of the Reserve Bank of India (RBI). The local currency opened at 88.6975 against the US dollar, which is above the previous closed price 88.7612.
According to Bloomberg data, Asian currency in morning trading was under pressure. South Korean Won saw 0.18 percent, Thai Baat 0.15 per cent, Indonesian Rupee and Singapore dollars 0.08 per cent, Chinese Rainmine and Japanese yen saw a decline of 0.04 per cent.
The markets are waiting for the decision of the Monetary Policy Committee of the Reserve Bank of India (RBI), which will be announced on Wednesday.
A survey conducted by Moneycontrol among economists, Treasury heads and fund managers has shown that the Reserve Bank of India’s Monetary Policy Committee (MPC) may maintain status quo at interest rates in its October review.
Most experts stated that the rate fixation panel would feel relief from high growth in the first quarter, while it would take time to assess data of Goods and Services Tax (GST) reforms.
“Since the Fed is ready to cut rates in its next monetary policy meeting, RBI is expected to keep rates stable,” CR Forex Advisors Managing Director Amit Pabari said, this interest rate can provide some support to the rupee. “
Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, said, “FPIs have been selling in the stock markets and whenever the rupee grows, take it down. The markets are waiting for RBI policy decisions on Wednesday due to no further news on the Indo-US trade treaty.”
Meanwhile, Trump has once again played the tariff card. He said that heavy duty will be imposed on countries that do not make furniture in America. North Carolina has been talked about bringing back the lost furniture industry. Not only this, he even said that 100% tax will be imposed on every movie made outside America. However, the method and rate of these tariffs is not clear at the moment. He said on Monday, “Our film production business has been stolen by other countries from the United States, just as ‘stealing candy’ from a child.”