The rupee nearly flattened against the dollar on Friday, which caught a breath ahead of the Federal Reserve Conference later on Friday.
Bloomberg showed that the Indian currency last changed hands at 79.8712 per dollar, compared to its previous closing rate of 79.8837.
However, the greenback took a breather, holding on to its recent gains against the euro and sterling, with the dollar index, which tracks the currency against six major counterparts, at 108.5 on track for weekly gains of 0.38 percent and already 2.5 percent higher. cents in August.
The Indian rupee fell for the third straight week under pressure from firmer oil prices and the dollar.
For the week, the domestic currency fell 0.1 percent, after trading in a range of 20 paisa during the period.
Investors will watch Fed Chair Powell’s speech at the Jackson Hole symposium at 1400 GMT for some insight into how aggressively the US central bank still plans to raise interest rates.
“The smoke signals (from the Fed) have been… ‘if we have to make the mistake of over-tightening or not doing enough, we know which side we want to be on,’” Ray Attrill, head of FX strategy at National Australia Bank, Reuters told Reuters.
“I think there’s an element of wanting to be seen as talking loudly in the hope that the louder they talk, the less we have to do in terms of policy.”
Investors will also look to Powell to see if his comments on the long-term outlook could prompt markets to phase out bets on monetary easing for 2023, supporting the dollar, Attrill added.
Markets are currently positioned so that rate hikes in the US will peak this year or early 2023 and are pricing in rate cuts later that year on the expectation that policymakers will be more concerned about slowing growth than high rates by then. inflation.