Rupee trades lower against US Dollar

NEW DELHI: The rupee dropped 9 paise to 66.19 against the US dollar in early trade on Monday in line with most Asian currencies as markets opened for the first time since the deadly terror attacks in Paris over the weekend that killed 121 people and wounded 352 others.

The domestic currency had gained 21 paise to settle at 66.10 against the greenback on Friday amid heavy dollar selling by banks and exporters.

The currency market is eyeing domestic WPI data scheduled for release during the day. A speech by ECB President Mario Draghi will also be watched keenly.

The recent spate of data releases globally has raised concerns over the global economic outlook. Data released earlier in the day suggest the Japanese economy is back into recession. The economy logged de-growth of 0.80 per cent in the September quarter, compared with a 0.7 per cent contraction in the previous quarter.

Nonetheless, the Japanese yen was ruling marginally higher at 122.52 against the US dollar. But the Korean won slipped 0.73 per cent, Malaysian ringgit fell 0.46 per cent, Indonesian rupiah lost 0.46 per cent and the Singapore dollar was down 0.37 per cent against the greenback.

The dollar index, which tracks dollar movement against a basket of six major world currencies, inched 0.11 per cent up to 99.10.

Last week, New York Fed President William Dudley said, “It is quite possible that the condition the committee has established to begin to normalize monetary policy could soon be satisfied.”