Rupee depreciates for third successive day, down 19 paise to 66.68 vs dollar

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NEW DELHI: Continuing its losing streak for the third day, the rupee fell 19 paise to 66.68 against the US dollar in early trade on Monday, a day ahead of the kick start of two-day the US Federal Reserve policy review.

The domestic currency had declined 9 paise to close at 66.49 on Friday on persistent dollar demand from banks and importers for the US currency.

“I would expect markets would be looking for a continuation of a very dovish Fed and Yellen. The Fed still has two rate hikes on the table. It would not surprise me if one of those was to disappear from the menu before too long,” said Geoffrey Lewis, Manulife Asset Management.

In an interview to ET Now, SK Ghosh, Chief Economic Adviser, SBI, said “If there is any rate action — I will repeat the word any, because we do not think any palpable rate action as of now — it will be more towards June and not towards September because September is closer to the election date and there is always huge political economy of rate hikes in US. So in our sense.If there was going to be a rate hike, it will be in June but at least it will be not be in September.”

The dollar index, which tracks the movement of greenback against a basket of six major world currencies, fell 0.18 per cent to 94.94.

Meanwhile, most Asian currencies were trading weak against the dollar. The Korean won, the Indonesian rupiah,the Thai baht and the Taiwanese dollar were among the currencies that fell the most against the US currency.