INSUBCONTINENT EXCLUSIVE:
Extending its recent decline against the
US dollar, the rupee started Friday's session on a lower note against the greenback
The rupee fell by as much as 36 paise to 67.98 against the US dollar in morning trade on Friday
At this level, just two paise from the 68 level, the rupee marked a three-day low against the US dollar
Losses for the rupee came a day after the dollar strengthened against a group of currencies, after the European Central Bank signalled
interest rate hikes were a long way off
At 10:47 am, the rupee was trading at 67.92 against the greenback
On Thursday, it had gained 3 paise to end at 67.62 against the US dollar, cutting short its two-day decline.1
The European Central Bank held off on rate hikes
The central bank's unexpectedly dovish decision overshadowed its statement that it aimed to wrap up its crisis-era stimulus programme at the
The ECB now plans to reduce monthly asset purchases between October and December to 15 billion euros until the end of 2018 and then conclude
Analysts say the rupee may touch 68 levels against the US dollar soon
All eyes are now on a key OPEC (Organization of the Petroleum Exporting Countries) meeting in Vienna on June 22-23, to decide whether a pact
curbing output needs to be adjusted in order to rein in oil prices that topped $80 a barrel last month.3
The US Federal Reserve, on Wednesday, decided to raise rates by a quarter of a percentage point and indicated additional hikes this year
than anticipated previously
That triggered a surge in the dollar, which added to headwinds for the rupee.4
Back home, macroeconomic data earlier this week showed a widening in current account deficit and rising inflation worries
(Retail inflation, IIP, wholesale inflation)5
Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore on Thursday, according to provisional data from the stock exchanges
Meanwhile, the stock markets were under pressure on Friday
At 11:15 the BSE Sensex was up 37 points at 35,637 while the NSE Nifty was up 15 points at 10,823, amid choppy trade.(With agency inputs)
