Rupee breaches 64-level

On Monday, the rupee hit a high of 63.85 to the dollar in intra-day trade. Forex dealers indicated that the currency found a resistance at 63.85 level even as nationalised banks came into the picture. The RBI is believed to have used the rupee appreciation phase to shore up its forex reserves which now stand at $393.40 billion.

By: ENS Economic Bureau | Mumbai | Published: August 29, 2017 2:23 am
rupee, rupee appreciation, rupee today, rupee against dollar, rupee value, india market, business news, us monetary policy, forex deals The currency appreciated 0.19 per cent against the dollar on Monday.

The rupee on Monday saw its biggest one-day appreciation in almost three weeks, with the currency closing at 63.91 to the dollar following a significant weakening of the greenback. The currency appreciated 0.19 per cent against the dollar on Monday. The dollar fell against most of its peers after the market failed to find any guidance on the US monetary policy in Fed chief Janet Yellen’s speech at the Jackson Hole summit on Friday. The market has been closely watching the Fed’s statements for possible hints on the US monetary policy as well as any guidance on its proposed balance sheet shrinkage.

On Monday, the rupee hit a high of 63.85 to the dollar in intra-day trade. Forex dealers indicated that the currency found a resistance at 63.85 level even as nationalised banks came into the picture. “Public sector banks are likely to have bought huge amount of dollars on behalf of the central bank at 63.86-63.88 levels,” said a forex dealer. The RBI is believed to have used the rupee appreciation phase to shore up its forex reserves which now stand at $393.40 billion.  On a year-to-date basis, the currency has given return of  6.27 per cent.

Apart from the dollar weakness, foreign inflows have also contributed considerably towards the rise in the rupee. So far this year, foreign portfolio investors (FPIs) have infused a net of $19.55 billion into Indian debt. Yield-hungry FPIs have already utilised the investment limits permitted in government securities and corporate bonds.

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