Indian rupee depreciates by 12 paise at 67.18 against US dollar.

Indian rupee opened weak and depreciated by 10 paise to trade at 67.18 against the US dollar on Monday at the Interbank Foreign Exchange market following demand of the American currency by importers and banks. At 9.30 am, the local currency was trading 12 paise down at 67.20 against US dollar.

The currency had closed 9 paise up at 67.08 against US dollar on selling of the American currency by banks and exporters.

Domestic stock markets flat opening affect the rupee sentiments. At 9.36 am, Sensex was trading 34.71 points down at 27,768.53, while NSE Nifty was trading 11.35 point down at 8,529.85.

Dollar’s strong performance against other Asian currencies also contributed to rupee’s weakness. Yen was performing weak amid hopes that the US Federal Reserve will hold rates steady while the Bank of Japan will expand stimulus at their respective policy meetings this week.

“There is little possibility of rupee trading below 66:70/80 against the US Dollar over the next 4-6 weeks. Upside in dollar-rupee remains capped by the technical resistance around 67:30 zone, which when consumed, can create opportunity for 67:70/80 levels,” Anindya Banerjee, currency analyst, Kotak Securities said.

Source : financialexpress.com​