| Date: |
04-07-2016 |
| Subject: |
Rupee appreciates 12 paise to 67.18 per dollar on firm cues |
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NEW DELHI: The rupee rose 12 paise to 67.18 against the US dollar in early trade on Monday in line with a firm trend in other Asian currency markets.
The domestic currency had snapped a two-week losing streak on Friday on fresh dollar selling in the wake of strong foreign inflows to the domestic equity market.
The Malaysian ringgit, the Thai baht and the Chinese yuan were among the currencies trading in the green in trade, thanks to risk on trade was seen in equities across emerging markets last week after investors digested UK's decision to exit European Union.
Foreign investors pumped in over Rs. 3,700 crore into Indian stock markets in June, taking the total to more than Rs. 20,600 crore so far this year, mainly on hopes of a good monsoon.
Experts believe that may stabilise in the long term, but is likely to remain volatile with respect to US dollar in the near term. The rupee is likely to gyrate between 67.65 and 69.30 to the dollar between now and July 27, options expiring next month indicate, ET said in a report.
Some analysts believe that the local unit may weaken to Rs 70 per dollar level by the end of ongoing calendar. Vidya Bala, Head of mutual fund research of FundsIndia, believes that the FCNR redemptions due in September-November could be one development that may pressurise the rupee.
Source : economictimes.indiatimes.com
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