Currency News: Rupee trades higher against US dollar
Currency News
Finally after a 7-day fall streak the Rupee has appreciated. The Indian currency appreciated by 4 paise to 66.4 against the US dollar on Tuesday morning. We have also seen gains in other Asian currencies.
The Rupee had dropped 68 paise and closed at a nearly 8-week low of 66.44 against the dollar. The reason of this event was the constant demand for dollars by banks and importers.
The dollar gained as that jobs data increased hopes for a US interest-rate hike in December. As well, foreign-exchange market participants are looking beyond the possible end-of-year increase, and are starting to factor in additional rate increases next year, Tokyo dealers said.
The dollar index was trading lower by 0.26 per cent against a basket of six currencies in the late afternoon trade.
Talking of other Asian currencies that gained on Tuesday, the Taiwanese dollar was up 0.54%, the Indonesian rupiah also rose 0.17% and the Tai baht went ahead by 0.24% against the U.S dollar. The other two currencies where the Korean won and Japanese yen which where almost flat.
Indian ratings said that they believe in several overarching global factors coupled with domestic fragilities could spell bearishness on the rupee and bonds in this holiday-truncated week. The rupee is expected to trade between 66.0-66.50 to the dollar this week before consolidating above 66
Foreign brokerage BofA-ML is expecting the Indian currency to hold at 65.
