On Monday, the Dollar Index (DXY00) reached its highest level in 4-1/2 months, with a gain of 0.48%. This increase was initially driven by the strong US February personal spending report released last Friday, which instilled confidence in the dollar. Additionally, Federal Reserve Chair Powell’s comments on Friday, indicating a lack of urgency to lower interest rates, further supported the dollar’s rise.
However, this trend was contrasted by the Reserve Bank of India introducing new regulations specifying that exchange-traded rupee derivative transactions should be used solely for hedging purposes. This move came after their announcement in January that exchanges would be permitted to offer forex derivative contracts involving the rupee for hedging contracted exposure starting April 5.
In light of these developments, viewers can gain further insights and analysis on this topic by tuning in to the latest episode of Commodities Corner hosted by Manisha Gupta and featuring Amit Pabari, Founder & Managing Director of CR Forex.
