Rupee rises 9 paise to 79.24 against U.S. dollar in early trade
The Hindu
In the previous session, the rupee had closed at an all-time low of 79.33 against the U.S. dollar
Recovering from its record low level, the rupee appreciated 9 paise to 79.24 against the U.S. dollar in early trade on Wednesday.
At the interbank foreign exchange, the rupee opened at 79.29 against the American dollar. In initial trade, the local currency witnessed a high of 79.24 and a low of 79.31 against the U.S. dollar.
In the previous session, the rupee had closed at an all-time low of 79.33 against the U.S. dollar.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened higher this Wednesday tracking an overnight fall in crude oil prices.
"However, appreciation bias could remain capped and possibly the rupee could witness new lows against the dollar weighed down by fears of economic slowdown and worsening CAD (Current Account Deficit).
"In fact, many traders and investors are forecasting a CAD upwards of 3% of GDP in the ongoing financial year, up from 1.2% last year," Mr. Iyer said.
The only thing which could arrest the rupee's fall could be a hawkish/aggressive stance of the Reserve Bank of India (RBI) in their upcoming meeting in August, Mr. Iyer noted.