Re dips by 54p to 63.37 per $ ahead of key US Fed meet
18 Sep 2013 10:06 PM GMT
The rupee on Tuesday fell 54 paise to end at 63.37 against the dollar, the biggest drop in two weeks, on fresh demand for the US currency from importers ahead of the Federal Reserve's two-day policy meeting. The fall was restrcited by a drop in the value of the dollar overseas, positive local equities and capital inflows, a forex dealer said.
At the interbank foreign exchange market, the local currency resumed at 63.37 to the dollar from the previous close of 62.83. It moved in a range of 62.95 and 63.6450 before settling at 63.37, a fall of 54 paise or 0.86 per cent. It was the biggest drop for the rupee since 3 September, when it fell 163 paise to 67.63 against the dollar. It had gained 67 paise during the previous two sessions.
'On the domestic front, Monday's inflation numbers have dented sentiment,' said Abhishek Goenka, CEO of India Forex Advisors. 'Going ahead, the two-day FOMC
meeting starting Tuesday and the RBI monetary policy on 20 September will be driving the markets.'
The rupee trimmed gains on Monday after the government said inflation as measured by the wholesale price index was 6.1 per cent in August, the fastest pace in six months. The United States Federal Open Market Committee (FOMC) meeting starts Tuesday and investors expect a decision on a reduction in the pace of its $85 billion-per-month bond buying programme.
The dollar index, a gauge of six major global rivals, was down 0.15 per cent. 'The trading range for the spot dollar-rupee pair is expected to be within 63 to 64,' said Pramit Brahmbhatt, chief executive officer of Alpari Financial Services (India).
At the interbank foreign exchange market, the local currency resumed at 63.37 to the dollar from the previous close of 62.83. It moved in a range of 62.95 and 63.6450 before settling at 63.37, a fall of 54 paise or 0.86 per cent. It was the biggest drop for the rupee since 3 September, when it fell 163 paise to 67.63 against the dollar. It had gained 67 paise during the previous two sessions.
'On the domestic front, Monday's inflation numbers have dented sentiment,' said Abhishek Goenka, CEO of India Forex Advisors. 'Going ahead, the two-day FOMC
meeting starting Tuesday and the RBI monetary policy on 20 September will be driving the markets.'
The rupee trimmed gains on Monday after the government said inflation as measured by the wholesale price index was 6.1 per cent in August, the fastest pace in six months. The United States Federal Open Market Committee (FOMC) meeting starts Tuesday and investors expect a decision on a reduction in the pace of its $85 billion-per-month bond buying programme.
The dollar index, a gauge of six major global rivals, was down 0.15 per cent. 'The trading range for the spot dollar-rupee pair is expected to be within 63 to 64,' said Pramit Brahmbhatt, chief executive officer of Alpari Financial Services (India).
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