|Day's range||64.908 - 65.271|
|52-week range||63.2100 - 65.8900|
Fear and panic gripped the currency market sentiment initially after US President Donald Trump decided to slap tariffs on China.
The rupee depreciated by 8 paise to 65.19 against the US dollar in early trade today on sharp losses in global equity markets after US President Donald Trump imposed USD 60 billion of tariffs on Chinese imports.
The USD-INR pair will continue to be under a little bit of pressure due to month end/year-end demand, says Bhaskar Panda of HDFC Bank.
I expect the 10-year benchmark bond yield to trade in a range of 7.53-7.58 percent today, says Bhaskar Panda of HDFC Bank.
The rupee opened at 65.12 a dollar and touched a high of 65.0250 in day trade after a less hawkish Fed commentary on rate hike in 2018.
The dollar has been rising since mid-February on hopes the U.S. Federal Reserve would signal it was prepared to do more than the three rate hikes that markets have priced in for 2018. Fears of a trade war have also gripped financial markets following the U.S. decision to impose tariffs on imported steel and aluminium. President Donald Trump is next expected to unveil up to $60 billion in new tariffs on Chinese imports by Friday.
Both currencies have fallen sharply since the beginning of the year, alongside a rise in expectations for improved global growth and faster policy tightening by the Fed. The Fed raised its interest rates by a quarter percent on Wednesday, and forecast two more hikes for 2018, highlighting its growing confidence that tax cuts and government spending will boost the U.S. economy. The recent falls in the rupee and rupiah are reminiscent of the 2013 selloff when foreign investors fled emerging-Asia markets after the Fed signalled an end to ultra-easy crisis policy.
The rupee is expected to be rangebound as general dollar weakness is offset by weak equity markets and higher crude oil prices, says Mohan Shenoi of Kotak Mahindra Bank.
A recovery seen in equities may have revived demand for the rupee, restricting further falls against dollar, which has been trading firm ahead of FOMC rate decision, says Anand James, Chief Market Strategist at Geojit Financial Services.
Top Indian cement maker UltraTech (ULTC.NS) said on Tuesday it had secured backing from some creditors of Binani Cement to buy the firm for $1.1 billion outside of a bankruptcy process, a move that is testing India's new insolvency proceedings. As part of the bankruptcy process, a panel made up of Binani's creditors has already approved a rival bid by a group including Dalmia Bharat (DALA.NS) and a fund backed by Bain Capital and India's Piramal Enterprises (PIRA.NS).
The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 per cent from Monday's close of 65.17.
The sentiment in forex market turned weak after the country's current account deficit widened in the December quarter on the back of higher trade deficit.
The rupee depreciated by 9 paise against the US dollar to 65.03 against in opening trade today as the greenback firmed up ahead of US Federal Reserve's policy meet this week.
The rupee today closed marginally down at 64.94 against the US currency due to continued foreign fund outflows, weak trade data and expectations of a rate hike by the US Federal Reserve.
Russia-UK tensions may revive strength in US dollar, but rupee will keep its eye on trade data as prospects of trade war still remains potent, says Anand James, Chief Market Strategist at Geojit Financial Services.
The domestic currency had opened on a weak note at 64.92 fell to a low of 94.98 per dollar in early session as trade war worries gripped investors.
The according to an RBI statement, the exchange rates for the pound and the yen against the rupee were 90.7229 and 61.27 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.