Rupee appreciates 11 paise to 66.93 against US dollar

NEW DELHI: Extending its gains for the fourth session, the rupee rose 11 paise to 66.93 against the US dollar in early trade on Monday ahead of the domestic inflation readings scheduled later for the day.

The domestic currency had closed at 67.04 on Friday, amid persistent dollar selling by banks and exporters.

Despite the recent gains, the domestic currency, with 1.3 per cent fall, remained the worst performing Asian currency this calendar.

Experts, though, do not see any major depreciation in the rupee going ahead.

Aditi Nayar, Senior Economist at ICRA, said, “I think, there have been a lot of global factors at play. What is happening with the BOJ, the ECB, the broader trends as far as the dollar index are concerned and, of course, we had a spate of concerns before the budget as far as the rupee was concerned. Those concerns have largely reversed after the fiscal consolidation has been reiterated in the Budget. Overall, going forward into 2016-17, we are pencilling in some modest depreciation is the baseline rate.”

In an interview to ET Now, Bhaskar Panda of HDFC Bank said that he would wait and see it the dollar-rupee exchange rate goes towards 66.8.

“I will rather be long there rather than going soft here. I do not think this trend of rupee depreciation is going to continue for long. Earlier also I had given a call that we should be close to somewhere between maybe 66.80 to 67 by March end,” Panda said.

On Monday, most Asian currencies including the Korean won, the Philippine peso, the Indonesian rupiah and the Malaysian ringgit were trading higher against the greenback.

The dollar index, which tracks the movement of dollar against a basket of six major world currencies, rose 0.03 per cent to 96.20.