Indian rupee faces Rexit jitters, falls 60 paise to 67.68 per dollar in early trade.

Indian rupee as expected opened on a weak note on Monday and fell 60 paise to 67.68 per dollar after Raghuram on Saturday said no to second term as RBI Governor that spooked the domestic currency and markets amid weak global cues.

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.

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.

Source : financialexpress.com​