Rupee trades lower against US dollar
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, stood at 97.91.
By ET Online | Updated:
NEW DELHI: Continuing its recent fall, the rupee depreciated 3 paise to 65.78 against the US dollar in early trade on Friday.
The domestic currency had settled at a one-month low of 65.75 against the US dollar in the previous session on fresh dollar demand from banks and importers.
Atlanta Fed President Dennis Lockhart, who is a voter on Fed's monetary policy committee this year, said overnight that the central bank was deliberately trying to convince investors of a possible December interest rate hike in its last policy statement, and was successful in doing so.
"Going into that (October) meeting, I felt a successful outcome would be expectations aligning with the view that 'liftoff' at our upcoming December meeting is a possibility, but not a certainty,” Reuters reported Lockhart as saying at a conference in Bern, Switzerland.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, stood at 97.91.
“If you look at the three large central banks, they are going in different directions. The US Fed is looking to tighten while the ECB and the Bank of Japan are looking to ease. So obviously, it is going to be a story of dollar strength and that will play off into the emerging market currencies as well. Now in spite of whatever fundamental strength India has, our currency cannot be too out of line with the movements of other EM pack,” Badrish Kulhalli, fund manager for fixed income at HDFC Life Insurance.
Most Asian currencies were trading with positive biased on Friday morning. The Taiwanese dollar gained 0.9 per cent; while Indonesia rupiah (0.11 per cent), Japanese yen (0.08 per cent), Thai baht (0.10 per cent) and Singapore dollar (up 0.02 per cent) all were trading higher. Malaysian ringgit traded flat.
The domestic currency had settled at a one-month low of 65.75 against the US dollar in the previous session on fresh dollar demand from banks and importers.
Atlanta Fed President Dennis Lockhart, who is a voter on Fed's monetary policy committee this year, said overnight that the central bank was deliberately trying to convince investors of a possible December interest rate hike in its last policy statement, and was successful in doing so.
"Going into that (October) meeting, I felt a successful outcome would be expectations aligning with the view that 'liftoff' at our upcoming December meeting is a possibility, but not a certainty,” Reuters reported Lockhart as saying at a conference in Bern, Switzerland.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, stood at 97.91.
“If you look at the three large central banks, they are going in different directions. The US Fed is looking to tighten while the ECB and the Bank of Japan are looking to ease. So obviously, it is going to be a story of dollar strength and that will play off into the emerging market currencies as well. Now in spite of whatever fundamental strength India has, our currency cannot be too out of line with the movements of other EM pack,” Badrish Kulhalli, fund manager for fixed income at HDFC Life Insurance.
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Most Asian currencies were trading with positive biased on Friday morning. The Taiwanese dollar gained 0.9 per cent; while Indonesia rupiah (0.11 per cent), Japanese yen (0.08 per cent), Thai baht (0.10 per cent) and Singapore dollar (up 0.02 per cent) all were trading higher. Malaysian ringgit traded flat.
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