| Date: |
23-12-2014 |
| Subject: |
Indian rupee opens lower at 63.30 per dollar |
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The Indian rupee opened marginally lower at 63.30 per dollar on Tuesday against the previous closing of 63.25.
The dollar holds firm, having risen to its highest level in nearly nine years against a basket of major currencies, driven in part by persistent weakness in the euro and a fresh fall in the yen.
Ashutosh Raina of HDFC Bank said, "The upward march of USD continues amid thin trading in holiday season. The revival of risk appetite helped global equity markets end higher, with dollar broadly firm on divergent yield outlook."
He further added, "The fall in fuel prices should also help the global growth. The rupee is consolidating around 63 levels after hitting a recent high of 63.90/dollar, with suspected intervention keeping it in a tight range."
According to Karvy's currency report, US dollar has appreciated with respect to all the major currencies on Monday with the Dollar index trading above 89.70. Euro is trading at 1.2228, pound at 1.5589 and the Japanese Yen at 120.13 after touching a low of 120.18 in early trade this morning. Indian rupee NDF is trading is trading on a flat note, with no change from yesterday's close.
Major economic data is to be released from the UK economy. GDP data is expected to be remaining unchanged. There is a good amount of economic data to be released from the US markets.
We expect to rupee to open on a flat note. With the trading volumes expected to be light, there could be excess volatility in the bourses than usual. Rupee is expected to largely remain range bound for the day.
Source : moneycontrol.com
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