| Date: |
04-11-2015 |
| Subject: |
Rupee trades higher against US dollar |
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NEW DELHI: The rupee appreciated by 10 paise to 65.54 against the US dollar in early trade on Wednesday. The domestic currency had declined by 5 paise to settle at a one-month low of 65.64 against the greenback in Tuesday's session on fag-end dollar buying by banks.
The strength in the rupee on Wednesday was largely in line with the gains seen in most Asian currencies.
Indonesia rupiah (up 0.78 per cent), Taiwanese dollar (0.72 per cent), Malaysian ringgit (0.60 per cent), Korean won (0.36 per cent) and Thai baht (0.11 per cent) were all trading higher against the dollar. The Japanese yen inched down 0.2 per cent.
The dollar index, which tracks the movement of dollar against a basket of six major world currencies, stood at 97.32, up 0.2 per cent.
"The rupee has been volatile and that is something of an understatement," said Killol Pandya, Head of Fixed Income, Peerless Mutual Fund. In an interview with ET Now, Pandya said RBI is looking to anchor expectations at 65 level.
"It is looking to draw hard lines probably somewhere in the habitat of 66. The central bank does have plenty of ammunition to tackle it. The forex reserves are significantly higher than where they were; we have eight months of import cover, which is sort of a benchmark," he said.
He sees rupee trading in the 64.5-66 range in the immediate future.
Source : economictimes.indiatimes.com
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