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Rupee advances, forward premiums climb on dovish Fed outlook
The Indian rupee appreciated to 83.8475 per U.S. dollar after Federal Reserve Chair Jerome Powell's dovish comments suggested a possible rate cut next month. The implied yield on the dollar/rupee 1-year forward premium reached 2.14%, the highest since May 2023. Powell emphasized the labor market's softness and the Fed's confidence in meeting its inflation targets.