| Date: |
22-08-2016 |
| Subject: |
Indian rupee depreciates by 14 paise at 67.20 against US dollar in early trade |
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India rupee opened weak and was trading 14 paise down at 67.20 (9.13 am) against the US dollar at the Interbank Foreign Exchange (Forex) market on Monday as demand for the American currency increased among importers and banks. It opened at 67.19 level against dollar. The local currency had closed at 67.06 on Friday. Domestic equity markets flat, but positive opening capped rupee’s fall. At 9.18 am, Sensex was trading 16.83 points up at 28,093.83, while NSE Nifty was trading 3.75 points down at 8,663.15.
Dollar was trading firm against other emerging market currencies that also contributed to rupee’s fall. “There is strong dollar trend in morning today in Asia, post hawkish comments from Fed vice-chair. Yuan is leading the weakness. Rupee will trade a mildly bearish bias, “Anindya Banerjee, currency analyst, Kotak Securities said.
The Indian forex markets were also eyeing the appointment of new Reserve Bank of India Governor. On Saturday, Urjit Patel was announced as the new RBI Governor, replacing Raghuram Rajan, whose tenure ends on September 4. Banerjee on rupee’s movement vis-a-vis Patel’s appointment said, “The news of new Governor is not expected to have much impact on markets.”
Source : financialexpress.com
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