| Date: |
07-09-2015 |
| Subject: |
Rupee depreciates against US dollar |
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NEW DELHI: The rupee fell 23 paise down against the US dollar at 66.69 on Monday even as mixed jobs data in the world's largest economy diminished hopes of a rate hike by the US Federal Reserve in September.
Data from the labour department on Friday showed non-farm payrolls rose by 173,000 last month, which marked a slowdown from July's upwardly revised gain of 245,000.
The Indian currency had declined 22 paise on Friday to end the week at 66.46 against the greenback. There was persistent demand for dollars from banks and importers amid foreign capital outflows on Friday.
"The rupee has depreciated about 5 per cent so far this year, but it is much better compared with those in countries like Brazil, Mexico and Indonesia, which have seen far more volatility," said Alka Banerjee of S&P Dow Jones Indices.
"India's central bank has made all the right moves to maintain the value of the currency. But if the market continues to weaken, we may be in for more depreciation," Banderjee added.
The dollar index, which tracks the greenback against a basket of six major world currencies, stood almost flat at 96.25 on Friday.
Peter Dixon, an economist at Commerzbank said there has been a lot of uncertainty with regard to what the Fed should be doing or is likely to do. "We had a knee-jerk reaction in the wake of the worst of the Chinese turmoil, which suggested that perhaps a September rate hike would not be on the cards. That was rolled back, of course, by Stan Fischer at Jackson Hole over the weekend," Dixon said in an interview to ET Now.
Source : economictimes.indiatimes.com
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