Investors pay attention to Fed meeting results, rupee hits best single-day performance in a month

The Indian rupee rose 0.27% against the dollar to close at 87.8150, the biggest single-day gain since August 19, supported by expectations of a Fed rate cut and positive progress in U.S.-India trade negotiations. Analysts warn that importers’ hedging operations and the Federal Reserve’s potential tough stance could limit the Indian rupee to further appreciate. The market has fully absorbed the expectation of a 25 basis point cut and is paying attention to Powell's speech and the latest economic forecasts.