The Rupee fell again by 13 paise on Wednesday, June 19, 2013, and is at Rs 58.90 per USD owing to continuous demand for Dollar from banks and importers. Earlier on Tuesday, June 18, 2013, it had plunged by 56 paise and was at 58.43 against Dollar at the Interbank Foreign Exchange market.
“Rupee started the week on a weak note by depreciating more than half per cent during the day against dollar as dollar index which measures the greenback against a basket of six other currencies traded strong against the other major currencies,” Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said. “The trading range for the Spot USD/INR pair is expected to be within 57.40 to 58.10,” he added.
According to Forex dealers gain of Dollar against Japanese currency Yen (¥95.30 = $1 as on Tuesday, June 18, 2013) increase its demand in the overseas market and lead to fall in value of Rupee against Dollar. The Dollar was earlier weak by about 0.1% against the Yen at 95.22 Yen, but was steady against the Euro at $1.3390 which reached a four-month high of $1.3415.
“Rupee might have become a victim of a carry trade unwind, as a sharp appreciation in yen and depreciation in the rupee since mid-May has become a pain trade for foreign institutional investors (FIIs) who have invested in Indian debt paper,” said Anindya Banerjee, Currency Analyst, Kotak Securities.
Investors are now waiting for some outcome from the U.S. Federal Reserve’s Policy meeting which is scheduled on Wednesday, June 19, 2013.