US Dollar Index traded higher by 0.56 percent yesterday after Federal Reserve Bank of Cleveland President Loretta Mester said that t he case for a rate hike in Nov’16 is on the cards provided the economic datasets of the US comes as per expectations.
She mentioned that gradual rate hike doesn’t mean moving rates up in every monetary policy meeting. Moreover, recent upbeat manufacturing PMI data release from the nation has infused hopes of a rate hike in coming session.
Manufacturing PMI surged more than the expected levels at 51.5 in Sep’16. It rebounded from 49.4 in Aug’16 which was the first slip since Feb’16. US Dollar Index made an intraday high of 96.39 and closed at 96.13 levels on Tuesday.
Rupee is likely to trade higher after all six members of the monetary policy committee of India voted in favor of cutting repo rate. This will likely boost the foreign inflows in turn keeping the INR supportive.
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