June 19, 2014 / 3:52 AM / in 3 years

Rupee strong on Fed comments; oil prices watched

Reuters Market Eye - The rupee is stronger at 59.98/99 versus its previous close of 60.39/40 after the U.S. Federal Reserve signalled that interest rates will stay low for a while yet.

A street side restaurant owner holds a bundle rupees as he sits outside his restaurant in New Delhi November 22, 2013. REUTERS/Adnan Abidi/Files

Traders said demand for dollars from oil marketing companies likely to keep the pair supported.

Earlier, the pair had briefly hit the day’s high of 60.1450 after Reuters reported India plans to clear some pending oil payments to Iran through the United Arab Emirates central bank, citing sources.

Market closely monitoring developments in Iraq after brent crude held above $114 a barrel on Thursday, near a nine-month high, supported by concerns about potential supply disruptions due to fighting in Iraq.

The U.S. dollar wallowed at its lowest in nearly two weeks against a basket of major currencies early on Thursday, having beat a hasty retreat after the Federal Reserve signalled that interest rates will stay low for a while yet.

The pair is seen trading in a 59.80-60.20 range during the session.

Reporting by Neha Dasgupta

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