Rupee trades higher against US dollar
NEW DELHI: Taking its winning streak to the eighth trading session, the rupee advanced 11 paise to 66.10 against the US dollar in early trade on Monday amid mixed cues from other Asian markets.
The domestic currency had settled at 66.21 against the greenback on Thursday on sustained dollar selling by banks and exporters. The currency market was closed on Thursday and Friday on account of Eid-e-Milad and Christmas.
The US dollar, down nearly 1 per cent this month, is headed for its biggest monthly loss since June after the US Federal Reserve in its two-day policy review earlier this month said it would hike interest rates, but at a steady pace.
On Monday, the Taiwanese dollar rose 0.59 per cent, while the Korean won, the Philippine peso and Malaysian ringgit advanced 0.14 per cent, 0.13 per cent and 0.10 per cent, respectively.
The Japanese yen inched up 0.02 per cent, while the Singapore dollar and the Thai baht edged 0.12 per cent and 0.08 per cent lower, respectively.
Some experts believe Asian currencies remain vulnerable as we step into 2016.
“We expect the Asian currencies to remain more vulnerable than other emerging market currencies due to de-pegging of the Chinese yuan to the US dollar,” Frank Benzimra, Head of Asia Equity Strategy, Societe Generale, said in an interview to ET.
The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, stood at 97.87. The index was flirting with 100 level at the beginning of the month. However, it retreated post the Fed meet.
Amid lack of global cues, the currency market would now be keenly tracking the domestic foreign flow trend. NSDL data showed foreign investors have pulled out more than Rs 6,500 crore from the capital market since the beginning of December.
The latest selloff came after foreign portfolio investors (FPIs) withdrew Rs 10,826 crore from the markets (equity and debt) last month, said a PTI report. Prior to that, overseas investors had infused a staggering Rs 22,350 crore into the domestic market in October.
Read full article: Economic Times
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