Rupee trades lower against US Dollar
NEW DELHI: The rupee fell by 4 paise to 66.23 against the US dollar on Monday in contrast to the gains seen in other Asian currencies.
The domestic currency had settled at 66.19 to the dollar on Friday at the Interbank Foreign Exchange as the dollar remained steady in the overseas market.
A Euro group meeting is scheduled for later in the day, where the members will discuss draft budgetary plans of euro states for 2016 on the basis of the European Commission’s recent opinions. The US Fed members are also expected to meet in an unscheduled meeting later in the day.
The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.36 per cent to 99.92.
“I think the currency will move depending on how the equity markets move globally. As I look at it, what really becomes very important is that there should not be sharp spikes in the currency up or down, because that is what makes the whole situation very volatile. In that respect, the Indian currency has actually been much more stable compared with other currencies globally,” Chanda Kochhar, MD & CEO, ICICI Bank, said in an interview with ET Now.
Among Asian currencies, the Singapore dollar was up 0.42 per cent. The Thai baht added 0.24 per cent, while the Chinese yuan advanced 0.13 per cent. The Indonesian rupiah (up 0.68 per cent), Malaysian ringgit (up 0.46 per cent) and Korean won (0.38 per cent) also gained against the greenback.
International credit ratings agencies have pointed out that the recent pay commission recommendations might weigh on India’s fiscal deficit targets and impact any review of its credit rating.
The pay panel proposal will entail an additional outflow of Rs1,02,100 crore from the exchequer during the next financial year.
Read full article: Economic Times