| Date: |
22-12-2015 |
| Subject: |
Rupee advances 6 paise to 66.29 against the US dollar |
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NEW DELHI: Taking its winning streak to the sixth trading session, the rupee advanced 6 paise to 66.29 against the US dollar in early trade on Tuesday. The rise was largely in line with gains seen in most Asian currencies.
Asian currencies including Indonesia rupiah (up 1.07 per cent), Taiwanese dollar (up 0.77 per cent), Malaysian ringgit (up 0.29 per cent) and Korean won (0.12 per cent) were trading higher. Singapore dollar and Thai baht added 0.11 per cent each. Chinese yuan inched up 0.04 per cent.
Dollar index, which tracks the movement of dollar against a basket of six major world currencies, stood at 98.40.
Experts largely believe the local unit to consolidate this truncated week amid lack of directional cues post the US Fed's hike last week.
"The holiday-shortened week is light in terms of data releases, and activity in financial markets is thus likely to stay on the softer side. The rupee is likely to stabilise between 66.2-66.7 per dollar," said India Ratings in a note.
Amid lack of directional cues, the rating agency said, the sentiment will be driven by flows' position as well as the overall sentiment in equity markets.
FPIs were net buyers to the tune of mere Rs 37 crore on Monday, data available with BSE showed. The domestic currency had settled at 66.35 on the same day.
For December, the institutional category has been set seller of Rs 4,850 crore worth of equities.
Meanwhile, with just 5 per cent fall this year, the rupee has performed relatively better than its peers, which have fallen up to 19 per cent against the greenback this year.
The rupee has been resilient and it will continue to be stable, feels Mark Mobius of Franklin Templeton Investments.
In an interview to ET Now, the expert said that the RBI governor Raghuram "Rajan has been doing a very good job and as a result the rupee has been in pretty good shape compared to some of the other countries. At this stage you are probably going to see a more stable exchange rate in India."
Source : economictimes.indiatimes.com
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