Mumbai: The Indian rupee crossed a near three-week high mark in opposition to the dollar on Tuesday on lower crude prices and prospects of fewer U.S. rate hikes in 2019 as markets counted down to a crucial Federal Reserve conference.
Worth mention here the rupee was at 70.89 to the dollar, after touching 70.84, which is its highest since Dec. 7 and stronger than Monday's close of 71.55.
"There is no demand for dollars because of expectations of lesser number of Fed rate hikes," stated a senior dealer at a state-run bank quoted by Times Now.
All most of the dollar sales were from banks, despite the fact that a few exporters were also selling, dealers stated.
The Fed will declare its rate decision post its two-day meeting ends on Wednesday. While the Fed is extensively likely to raise rates this month, analysts are calling for two more hikes in 2019 compared with three in September on tensions over a potential recession there, as per the Reuters poll.
It is noted that India's 10-year benchmark bond yield also knock down tracking crude prices and rupee becomes to 7.41 percent from 7.46 percent on Monday.