ICICI Direct, The Euro resumed its rally on Monday amid a sell-off in the dollar. The pair rose by 0.86% on Monday to 1.073 amid expectation that ECB will raise interest rates by 50 bps in its next policy.

ICICI Direct, The Euro extended its rebound on Friday as dollar slide to its lowest level in a week.

At the interbank foreign exchange market, the local unit opened at 82.12 against the American currency and finally closed at 82.02 (provisional) against the greenback, registering a gain of 4 paise over its previous close of 82.06.During the session, the rupee touched a high of 81.99 and a low of 82.14 against the dollar.

The rupee finished at 81.9750 per dollar, against its previous close of 82.055.

Forex traders said the Dollar index gained strength after US Federal Reserve Chairman Jerome Powell reignited worries of a 50-bps rate hike in the Federal Open Market Committee (FOMC) meeting to be held on March 21-22, 2023.

ICICI Direct, The US dollar index rallied more than 1.25% on Tuesday. The hawkish comments from Fed chair Jerome Powell sent the dollar to its eight week high as he said the ultimate level of interest rate is likely to be higher than anticipated earlier.

The British lender now sees the base case for the rupee at 81 per dollar by end-2023 but says the currency can easily gain to even 79 levels, Parul Mittal Sinha, head of financial markets for India, said in an interview.

At the interbank foreign exchange market, the local unit opened at 81.85 against the American currency and finally settled at 81.92 (provisional) against the greenback, registering a gain of 5 paise over its previous close of 81.97.

ICICI Direct, The US dollar index fell 0.42% on Friday on lower bond yields, after the Fed policy makers pointed a slow and steady approach is the need of the hour despite strong job market.

ICICI Direct, The US dollar index rallied more than 0.5% after US Jobless claims dropped to 190k, suggesting strong job market.