Fed signals vary, Asian currencies fall, rupee rally pauses

The recovery of the Indian rupee may stagnate as the Federal Reserve sends mixed signals and Asian currencies weaken. The 1-month forward exchange rate shows that the Indian rupee opened between 87.88-87.92 against the US dollar. Analysts pointed out that Powell's tough tone offset the dovish dot chart. Despite recent weakening of the dollar and inflows inflows driving the rupee, the rupee is still under pressure from regional foreign exchange trends, although support is around 88.