Rupee depreciates 7 paise against US dollar to 64.40

NEW DELHI: The rupee on Thursday depreciated 7 paise to 64.40 a dollar level in morning trade ahead of former FBI director James Comey’s congressional appearance later in the day.

Reports suggested that a written testimony from the fomer FBI director overnight did not add major revelations about an investigation into Russian meddling with last year’s US presidential election. Dollar index, which tracks dollar movement against a basket of six currencies, stood at 96.72 level.

“In the near-term, the USD-INR spot is likely to appreciate even more as uncertainty with respect to Trump’s administration will keep the American currency pressurised in turn favouring the Indian currency,” Angel Broking said in a note.

The RBI on Wednesday maintained status quo on the policy rate and lowered its inflation expectation to 2.0-3.5 per cent in the first half of the year and 3.5-4.5 per cent in the second half, which also lifted the local currency.

Analysts said the policy review by the ECB and snap elections in UK general election later in the day would also influence currencies globally. It will have a bearing on the rupee-dollar exchange rate as well, they said.

Meanwhile, most Asian currencies weakened in the early Thursday trade, with Japanese yen depreciating to 109.91 a dollar level, compared with 109.79 level in the previous session. Korean won slipped 0.23 per cent, while Singapore dollar inched 0.10 per cent lower. Thai Bhat, Malaysian ringgit and the Chinese yuan were down up to 0.20 per cent.

The domestic currency has appreciated 5.6 per cent against the US dollar so far this year, which has been in line with 5-7 per cent appreciation seen in other peer currencies.