| Date: |
16-12-2014 |
| Subject: |
Indian rupee breaches 63/$ for 1st time since January 28 |
|
The Indian rupee continues its down move as it breached 63 per dollar for the first time since January 28 on Tuesday.
It has opened lower by 31 paise at 63.25 per dollar against the previous day's close of 62.94 a dollar.
The Russian ruble rebounded from record lows it hit yesterday after the Russian Central Bank hiked interest rates to halt a collapse in its currency, while the backdrop of falling oil prices and concerns over global growth supported the safe-haven yen.
The Russian currency had tumbled over 50 percent against the dollar over the past half year on plunging oil prices and the west's sanctions linked to the Ukraine crisis.
Ashutosh Raina of HDFC Bank said, "The global risk off sentiment continues due to declining oil prices with WTI hitting a low of USD 55/bbl. The global inflationary expectations have come off sharply and growth concerns are impacting the markets across asset classes.”
“Markets await the outcome of two day FOMC meeting starting today. The diversionary global growth prospects have resulted in USD gaining across board, particularly against EM currencies,” he added.
“The USD-INR currency pair has been no exception with the 61-62/dollar range finally breaking and the pair almost touching 63/dollar levels. The pair can move higher from current levels owing to global factors and year-end profit booking," he said.
Source : moneycontrol.com
|