RBI Governor Raghuram Rajan on Saturday said no to a second term in the post, a surprise decision the industry and opposition parties termed as nation’s loss.
The domestic unit hovered in a range of 67.70 and 67.32 during the morning deals before quoting at 67.37 at 10.40 am.
According to Nomura, the news is a negative for Indian rupee. “Given that this was not broadly expected by the market, we expect rupee to temporarily underperform in the region,” the brokerage house said.
The rupee on Friday recouped against the US currency by 13 paise to close at 67.08 per dollar on fresh dollar selling by banks and exporters amid recovery in stock markets.
The rupee’s one-month non-deliverable forwards eased to as low as 67.98 per dollar, its weakest since May 25. That compared to the Friday’s close of 67.37.
The dollar index was trading down 0.48 per cent at 93.48 against a basket of six currencies in the early trade. The US dollar fell for the fourth day in a row early Monday, trading lower against most major currencies, making the dollar-priced commodity cheaper for those using other currencies and pushing up the demand.