The rupee today appreciated by 9 paise to 53.75 against the US dollar in early trade at the Interbank Foreign Exchange on selling of the American currency by exporters and banks. Besides, a lower opening in the equity market and strengthening of the euro against the dollar overseas also supported the rupee, forex dealers said. The BSE benchmark Sensex fell by 81.43 points, or 0.43 percent, to 18,600.88 in the early trade today.As global economic risks continue and FII investments in the country becoming volatile, the rupee is likely to remain under pressure and hover around the 52-54 level against the US dollar in the next 10 days, forex market experts feel.
“Rupee looks to remain under pressure during the coming days. With global risks prevailing and FII (foreign institutional investors) fund inflows slowing down, the local currency is likely to move around the crucial 54-54.30 level during the coming days of this month,” HDFC Bank chief dealer Ashtosh Raina told PTI.
Echoing similar views, N S Venkatesh, Head (Treasury) IDBI Bank, said: “The rupee is still expected to remain under pressure. Trade flow has to be present. There will be holidays as well, which will also affect the local unit”.
The rupee is likely to move in the 52-53.80 range as the results season might boost the equities market and that would cap the currency’s losses against the Greenback, he added.
The rupee touched a one-month low of 53.84 against the dollar on Friday, logging a loss of 43 paise due to heavy demand for the American currency from oil importers and defence companies.
FIIs made investments worth a meagre $14.89 million (Rs 80 crore) on that day. They have made a total investment of around $17.30 billion this year.
“Heavy dollar buying by oil companies in the last two days of the week (ended October 19) has badly hit rupee. In the remaining days of this month, the rupee movement will depend on Q2 results of various companies,” Dhanlaxmi Bank Executive Vice President Srinivasa Raghavan said.
No comments:
Post a Comment