 "Rupee breaches 65/$ despite RBI intervention")
The rupee breached the psychological 65-a-dollar level in early trade today after the Federal Reserve minutes hinted that the United States may start tapering its stimulus as early as next month.
The rupee has seen new closing lows in the last five straight trading sessions.
The rupee opened weak at 64.75/$ and went on to reach 65.56/$ as heavy demand from importers along with weak domestic equities continued to weigh on sentiment
S Srinivasaraghvan, head-treasury, Dhanlaxmi Bank said that though there was some demand from private and foreign banks, rupee depreciated more because of psychological effect of Fed’s minutes.
The currency's slide continued as the government is yet to come up with any concrete measures to encourage inflows. The high current account deficit -- which was at a record high last fiscal -- is weighing on the currency. Rupee is the worst performing currency in Asia.
The rupee has seen new closing lows in the last five straight trading sessions.
The rupee opened weak at 64.75/$ and went on to reach 65.56/$ as heavy demand from importers along with weak domestic equities continued to weigh on sentiment
More From This Section
There was a temporary pull back after the RBI intervention but again the rupee went past the 65-a-dollar level.
S Srinivasaraghvan, head-treasury, Dhanlaxmi Bank said that though there was some demand from private and foreign banks, rupee depreciated more because of psychological effect of Fed’s minutes.
The currency's slide continued as the government is yet to come up with any concrete measures to encourage inflows. The high current account deficit -- which was at a record high last fiscal -- is weighing on the currency. Rupee is the worst performing currency in Asia.