Indian rupee down by 9 paise at 67.15 against US dollar in early trade.

Indian rupee snapped Tuesday’s gains and opened 9 paise down at 67.15 against the US dollar at Interbank Foreign Exchange market (forex market) on Wednesday after demand for American currency rose among importers and banks. The local currency was trading 5 paise down at 67.11 against the US dollar at 9.45 am and had closed at 67.06 level a dollar on Tuesday. Domestic equity that opened firm tracking global cues on Wednesday restricted its losses. The BSE Sensex was trading 48.42 points up at 28,038.63, while NSE Nifty was trading 11.60 points up at 8,644.20 at 9.53 am.

The Indian currency was hovering in the range of 67.10 and 67.15 during the same time. Dollar’s firm trading other emerging currencies also contributed to rupee’s fall amid US Federal chair Janet Yellen’s speech on Friday to get a cue on interest rate.

HSBC in a report on FX said, “The INR lagged other Asian currencies since the start of the year due to positioning adjustments and higher oil prices. However, many of the positive attributes of the INR, such as high carry, improving BoP fundamentals, and a domestic-led growth story, largely remain intact. The passing of the Good and Service Tax (GST) bill and appointment of Urjit Patel as the next RBI governor should be supportive for the INR in the near term. By unifying all indirect taxes into one, the GST will simplify the tax framework, which would help to attract further FDI inflows over time.”

Source : financialexpress.com​