The INR is expected to open stronger around 83.05 levels and trade with an appreciative bias as dollar fell after the Federal Reserve’s policy decision yesterday. The US Central Bank maintained it’s benchmark rate at 5.50% and kept the interest rate cut projections unchanged. Moreover, the committee raised it’s inflation projection in the light of recent uptick in inflation reading. However, the Fed Chairman as well as Committee members failed to echo a hawkish tone. This has underpinned the dollar and US Treasury yields considerably, leading to a rebound in Asian equities with Nikkei reaching record high figures. On the other hand, oil prices sustaining above $85 shall keep rupee’s appreciation limited. Focus now turn towards India’s manufacturing and services PMI figures followed by BOE’s policy decision due today.

Range for the day: 82.90 – 83.20