The currency market remained broadly stable for the second consecutive week. The US Dollar Index and the euro are stuck in a narrow range. The US Dollar index (96.05) was stuck in between 95.85 and 96.60 last week. The euro (1.1311), on the other hand, oscillated between 1.1225 and 1.1355. As such, the view on the dollar index and the euro broadly remains the same as last week. Market could be waiting for the US Federal Reserve meeting this week. The outcome of this meeting could be key in setting the direction for the currencies, going forward.
The stability in the dollar and euro seems not to be helping the Indian Rupee. The domestic currency continued to fall against the US dollar for the third consecutive week.
Watch the Fed
The Fed Chairman Jerome Powell had already said that the central bank will discuss increasing the pace of stimulus taper in this meeting. As of now the Fed has reduced the monthly bond purchase by $15 billion per month ($10…