| Date: |
24-06-2015 |
| Subject: |
Indian rupee opens lower at 63.65/$, down 6 paise |
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The Indian rupee fell marginally in early trade Wednesday. The currency has opened at 63.65 per dollar, down 6 paise compared to 63.59 a dollar in previous session.
NS Venkatesh, IDBI Bank expects the rupee to move with a weakening bias due to month-end importer demand in a range of 63.55-63.70/USD.
He said the underlying sentiment in the market is positive due to above average monsoon. Expectation of the FII limit being linked to the INR limit will free some limit for investment by FIIs, he added.
"There is also an emerging expectation that RBI may cut rates in the future due to inflation trajectory falling at a pace faster than the central bank's expectations. However, gains are expected to remain capped due to the US treasury yields movement where minor hardening of the yields was noticed," Venkatesh said.
The rupee ended weak Tuesday on the back of a stronger dollar movement. However weakness in the Rupee remained capped due to Dollar sales from exporters and also a strong move see in Indian equities.
Source : moneycontrol.com
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