Rupee sinks over 35 paise against dollar after Fed hike
The rupee weakened nearly 36 paise to 67.80 against the dollar in early trade on Thursday on account of brisk buying of American currency by banks and importers.
The dollar hit its 14-year high on Thursday against a basket of major currencies after the Fed boosted the number of expected interest rate hikes for the next calendar year.
The rupee on Wednesday gained for first time in three sessions on positive sentiment triggered by lower inflation. The local currency closed 11 paise higher at 67.43 against the US dollar.
Brokerage Angel Broking said the USDINR is expected to depreciate in Thursday's session as the US Fed decision to increase interest rates and prediction of three rate hikes in 2017 boosted demand for the American currency, which in turn kept the pressure on the rupee. However, any unusual movement will prompt RBI to intervene in the market.
The dollar hit its 14-year high on Thursday against a basket of major currencies after the Fed boosted the number of expected interest rate hikes for the next calendar year.
The rupee on Wednesday gained for first time in three sessions on positive sentiment triggered by lower inflation. The local currency closed 11 paise higher at 67.43 against the US dollar.
Brokerage Angel Broking said the USDINR is expected to depreciate in Thursday's session as the US Fed decision to increase interest rates and prediction of three rate hikes in 2017 boosted demand for the American currency, which in turn kept the pressure on the rupee. However, any unusual movement will prompt RBI to intervene in the market.
0 Comments