Rupee appreciates 16 paise to 66.28 against dollar
The San Francisco Fed chief John Williams, among the biggest central bank hawks, last week on Sunday said the US economy is strong enough for a rate hike.
By ET Online | Updated:
NEW DELHI: The rupee appreciated 16 paise to 66.28 against the US dollar in early trade on Monday, tracking firm cues from other Asian currency markets.
The domestic currency had settled at 67.44 on Friday, the lowest level for the local unit since March 2.
The San Francisco Fed chief John Williams, among the biggest central bank hawks, last week on Sunday said the US economy is strong enough for a rate hike and that even the presidential elections would not stop the Fed if it wants to raise rates. Despite this, most Asian markets were trading higher in Monday morning trade.
The Japanese yen was quoting 0.48 per cent higher at 109.69 despite a weak set of economic data. The Korean won advanced 0.52 per cent to 1,184.10 against the greenback.
The Taiwanese dollar, the Singapore dollar and the Malaysian ringgit fell between 0.21 per cent and 0.25 per cent.
Rupa Rege Nitsure, Chief Economist at L&T Financial Services, said, “There will be depreciation bias in the rupee as well in line with other emerging markets currencies but we are in a sweet spot and our foreign exchange reserves are already $363 billion. The Reserve Bank of India will ensure that the depreciation takes place in an orderly fashion and given that our currency is still overvalued in fair terms that augurs well for our exports, I look at it not as any kind of panic or worrying situation for India.”
On a year-to-date basis, the domestic currency has fallen 2 per cent and has been the worst-performing major Asian currency.
The domestic currency had settled at 67.44 on Friday, the lowest level for the local unit since March 2.
The San Francisco Fed chief John Williams, among the biggest central bank hawks, last week on Sunday said the US economy is strong enough for a rate hike and that even the presidential elections would not stop the Fed if it wants to raise rates. Despite this, most Asian markets were trading higher in Monday morning trade.
The Japanese yen was quoting 0.48 per cent higher at 109.69 despite a weak set of economic data. The Korean won advanced 0.52 per cent to 1,184.10 against the greenback.
The Taiwanese dollar, the Singapore dollar and the Malaysian ringgit fell between 0.21 per cent and 0.25 per cent.
Rupa Rege Nitsure, Chief Economist at L&T Financial Services, said, “There will be depreciation bias in the rupee as well in line with other emerging markets currencies but we are in a sweet spot and our foreign exchange reserves are already $363 billion. The Reserve Bank of India will ensure that the depreciation takes place in an orderly fashion and given that our currency is still overvalued in fair terms that augurs well for our exports, I look at it not as any kind of panic or worrying situation for India.”
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On a year-to-date basis, the domestic currency has fallen 2 per cent and has been the worst-performing major Asian currency.
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