Rupee depreciates 5 paise to 67.15/$ on mixed Asian cues

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NEW DELHI: The rupee fell 5 paise to 67.15 against the US dollar in early trade on Monday, tracking mixed cues from Asian currency markets.

The domestic currency had closed 9 paise higher at 67.10 against the greenback in the previous session on fresh dollar selling exporters and banks.

The dollar index, which measures the movement of dollar against a basket of six major world currencies, stood at 97.08, up 0.03 per cent. Among Asian currencies, the Malaysian ringgit, the Korean won and the Thai baht eased, while the Chinese yuan edged up in early trade.

Experts believe that the domestic currency may see support at around 67 level in the near future, even as state-run banks are seeing buying dollars ahead of likely FCNR outflows in September.

The rupee is going to find a firm support at 67 for the time being and it makes sense to starting mopping up the dollars and building up the reserves even more, said K Harihar, First Rand Bank.

“The fact that the state run banks were actually buying the dollars, we did see a test of 67 and the rupee had gone to 66.90 and below levels. They were buying probably to shore up the forex reserves ahead of the large FCNR outflows that we know for sure will happen between September and November. But the rupee is in a very good range, tight range, with the strengthening bias left to itself as inflows come into the market,” Harihar said.