The American currency traded higher by 0.5 percent yesterday owing to stronger that expected release of consumer confidenc e data from the nation. US consumer confidence to the higheest level in 11 months thereby indicat i ng the fact that economic growth c ould pick up in the second half of the year.
Moreover, Fed Chair Janet Yellen in her recent speech stated that the case for a rate increase was strengthening, but provid ed little detail on when the Fed would next move. A ll the above factors has infused expectation of a r ate hike possibility in the coming months which inturn boosted the demand for the American currency. The American currency made an intraday high of 96.13 and closed at 9 6.0 4 on Tues day.
Rupee is likely to appreciated after the RBI governor in his foreword to the central bank’s annual report for 2015 – 16 stated that t he economy’s prospects for the current financial year looked brighter than the previo us fiscal year.