Non-deliverable forwards indicate rupee will open at around 82.64-82.66 to the U.S. dollar compared with 82.7225 in the previous session. Meanwhile, expectations regarding what the Fed will do next week changed following comments by two policymakers who prefer not raising rates next week. Fed Governor and vice chair nominee Philip Jefferson said "skipping a rate hike" at a coming meeting would allow the Fed to see more data before making decisions on additional policy firming. Philadelphia Fed President Fed Harker said he was increasingly in the camp of "thinking that we really should skip". The probability of a rate hike next week dropped to near 1-in-3 from about 2-in-3, according to the CME FedWatch Tool.

Source: The Hindu June 01, 2023 04:45 UTC