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  1. Indian rupee depreciates by 13 paise at 66.84 against US dollar

Indian rupee depreciates by 13 paise at 66.84 against US dollar

Forex dealers said rupee's fall was also restricted as dollar traded weak against other emerging currencies as expectations that US Federal Reserve will raise interest rates this year faded.

By: | Updated: August 12, 2016 6:20 PM
Indian rupee vs US dollar Forex dealers said rupee’s fall was also restricted as dollar traded weak against other emerging currencies as expectations that US Federal Reserve will raise interest rates this year faded. (Photo: Reuters)

Indian rupee depreciated by 13 paise to close at 66.84 level against US dollar on Thursday following fresh demand for the American currency from banks and importers. The local currency had opened 12 paise down at 66.83 a dollar. It had ended 12 paise up at at 66.72 vs the US dollar on Wednesday. Domestic stock markets higher closing on buying in blue chip stocks amid mixed global cues capped rupee’s fall. Sensex ended 84.72 points up to end at 27,859.60, while Nifty settled 16.85 points up at 8,592.15.

“There are no sustained trends in currency markets right now. Lack of macro triggers could be blamed for that. Liquidity driven carry plays have become cliche and hence are not able to hold major currencies together for long. Take Rupee for instance. Against the US Dollar, after appreciating for the last two session it reversed and depreciated on the back of weakness in Asian and EM pairs against US Dollar, “Anindya Banerjee, currency analyst, Kotak Securities said.

Forex dealers said rupee’s fall was also restricted as dollar traded weak against other emerging currencies as expectations that US Federal Reserve will raise interest rates this year faded. On the global front, the New Zealand dollar surged following Reserve Bank of New Zealand reducing interest rates.

The currency hovered in the range of 66.81 and 66.91 on Thursday.

Banerjee further added that major currencies like Euro and GBP were on the backfoot against US Dollar as well as Rupee. Yen did not move much. Indian Bonds could not hold onto the morning gains as yields inched up from 7.07% to 7.09% on the 10 year. Near term consolidation and correction is expected in the 10 year, as the run post policy has been near vertical. We remain bullish on Indian bonds on an intermediate basis. On USDINR we are looking at a range of 66.60/70 and 67.10/15 for the time being.

While, the RBI’s reference rate for the Yen stood at 65.91, the reference rate for the Great Britain Pound (GBP) stood at 86.95. The reference rates are based as of August 11, 2016.

 

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