Rupee down; exporter dollar sales may check fall

Tags: News
The rupee is trading lower at 60.24/25 versus its previous close of 60.03/04 as the dollar strengthens against most Asian currencies, but further falls in the Indian unit seen unlikely as traders expect dollar sales from exporters during the session.

Caution persists due to the Iraq crisis as Brent crude prices remained steady above $113 per barrel as fears of oil supply disruptions from Iraq offset the possibility of increased supply due to a thawing of relations between Iran and the West.

Traders expect the Reserve Bank of India to step in to check any spikes in the pair. The rupee hit a near two-month high of 60.55 per dollar on Tuesday but scaled back after traders spotted dollar sales from the central bank through state-run banks.

The U.S. dollar held onto modest gains early on Wednesday, having risen broadly after U.S. consumer prices recorded their largest increase in more than a year in May.

Caution also prevails ahead of the outcome of the U.S. Federal Reserve's two-day meet that ends later in the day.

The partially convertible rupee is seen trading in a range of 60.02 to 60.40 during the session.

EDITORIAL OF THE DAY

  • The government needs to explain the `67,382 crore IDS declarations

    The authenticity of disclosures made by individuals and companies under the much-publicised Income Disclosure Scheme (IDS) has come under scrutiny.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

<b>Disequilibrium:</b> The Looking glass war

In the looking glass war, where bitter adversaries - Ratan ...

Ananda Majumdar

<b>Ruminations:</b> How JP can wake up Cong

The Congress party has clearly missed a trick with its ...

Kuruvilla Pandikattu

Let go of ‘if onlys’, live in the moment

The prospect of facing certain death and reflecting on it ...