Dealers foresee intraday volatility in rupee due to taper tantrum

Rupee had risen rapidly last week of August, closing at 73 a dollar level on August 31, from 74.2 level on August 26 after Fed Chair Powell indicated he was in no hurry to raise rates

After appreciating in the interim, the Indian rupee is again inching towards 74 level, indicating that the two-way volatility will continue in the local currency in an environment of taper tantrum and risk off sentiment induced by the delta variant of Covid-19.

The rupee had rapidly appreciated in the last week of August. It strengthened to close at 73 a dollar level on August 31, from 74.2 level on August 26 after Federal Reserve Chairman Jerome Powell indicated he was not in a hurry to raise rates.

Rupee was appreciating even before the Fed Chair’s speech as dollars poured in