Indian rupee weakens at 67.05 level against US dollar in early trade.

Indian rupee depreciated by 9 paise to 67.05 against the US dollar at the Interbank Foreign Exchange market on Thursday following rising demand of the American currency among banks and importers. The local currency was trading at 66.98 level at 9.54 am and had closed with gains of 7 paise at 66.96 per dollar on Wednsday following sustained dollar selling from exporters amid firm domestic markets. Domestic equity markets opened flat on Thursday following mixed global cues. At 10 am, Sensex was trading 10.93 points down at 28,441.24, while NSE Nifty was trdaing 0.60 points down at 8,785.60.

Other emerging market currencies were trading weak against the US dollar, which also contributed to rupee’s fall.

While giving a near term range of 66:70-67:2.25 for INRUSD, Anindya Banerjee, currency analyst, Kotak Securities while talking to Feonline on Wednesday said that hopes of further easing from Bank of Japan in their September meeting is making speculators reach for yields in emerging markets. India being one of the favoured destination is finding enough takers for its debt equity assets. Robust intervention, however, from RBI has prevented a sharp appreciation of the currency.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.98 and for Euro stood at 74.62 on August 31, 2016. While the RBI’s reference rate for the Yen stood at 64.89, the reference rate for the Great Britain Pound (GBP) stood at 87.68.

Source : financialexpress.com