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The rupee depreciated for the seventh straight session, edging lower by one paisa against the US dollar on Wednesday, June 16, to settle at 73.32 (provisional) ahead of the US Federal Reserve meeting and muted domestic equities. At the interbank foreign exchange market, the local unit opened at 73.29 against the dollar and swung in the range of 73.26 to 73.38 during the day. In an early trade session, the domestic currency rose four paise to 73.27 against the greenback. The local unit has lost 52 paise in the seven trading sessions to Wednesday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.04 per cent to 90.50.
”The rupee depreciated for a 7th consecutive session against the U.S. dollar, as Asian currencies were stable while oil fell a bit and the market was awaiting the outcome of the all-important FED meeting tonight. Though, the rupee closed at 73.32 it had fallen to the extent of 73.38 before recovering,” said Mr. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
”The rupee may remain under pressure in the near term as oil prices rise but depreciation should be in control as RBI has sufficient reserves to manage the same,” added Mr Bhansali.
”Soaring oil prices amid demand outlook optimism and the fading prospect of Iranian oil returning to the market, led oil importers to rush to cover their USDINR positions ahead of today’s Fed meeting. So far, the rupee had been supported by the inflows pertaining to IPO’s that flowed until yesterday. If inflows get standstill, we might see the rupee tilting on the depreciation side in the upcoming time,” said Mr Amit Pabari, MD, CR Forex.
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