 "Rupee ends stronger against the greenback")
The rupee strengthened on Wednesday against the dollar due to dollar sale by corporates and expectations that the US Fed may not slowdown the third-round of quantitative easing (QE3) so soon.
However, the rupee continues to be near its record low hit last week due to outflows from domestic markets adding concerns that funding of the current account deficit will be difficult. The all-time record low in intra-day trades was Rs 58.98 against the dollar.
The rupee ended at Rs 58.72 against the dollar today, marginally strong compared with previous close of Rs 58.77. Yesterday it had ended at record closing low. The rupee had opened at Rs 58.92 per dollar. During the day it touched a high of Rs 56.62 and a low of Rs 58.74.
The movement of the rupee against the dollar now depends upon US Fed's two-day Federal Open Market Committee (FOMC) meeting which concludes on Wednesday.
“I do not think the US Fed will pull back third round of quantitative easing so soon. Thursday the rupee may trade in the range of Rs 58.00-58.50 against the dollar and the bias is more towards strengthening,” said S Srinivasaraghavan, executive vice president and head- treasury of Dhanlaxmi Bank.
However, the rupee continues to be near its record low hit last week due to outflows from domestic markets adding concerns that funding of the current account deficit will be difficult. The all-time record low in intra-day trades was Rs 58.98 against the dollar.
The rupee ended at Rs 58.72 against the dollar today, marginally strong compared with previous close of Rs 58.77. Yesterday it had ended at record closing low. The rupee had opened at Rs 58.92 per dollar. During the day it touched a high of Rs 56.62 and a low of Rs 58.74.
More From This Section
“Today corporates were selling dollar and there were no aggressive buying. Besides that many feel the US Fed may not start withdrawing QE3 so soon,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
The movement of the rupee against the dollar now depends upon US Fed's two-day Federal Open Market Committee (FOMC) meeting which concludes on Wednesday.
“I do not think the US Fed will pull back third round of quantitative easing so soon. Thursday the rupee may trade in the range of Rs 58.00-58.50 against the dollar and the bias is more towards strengthening,” said S Srinivasaraghavan, executive vice president and head- treasury of Dhanlaxmi Bank.