Rupee ends at near seven-month low

The rupee ended at near a seven-month low due to increase in US economic growth which fuelled concerns that the US Fed may start raising interest rates sooner. The rupee ended at 61.53 to a dollar, compared with its previous close of 61.16. The rupee had ended at 61.76 on March 5.

The US economy expanded at a 4.6 per cent annualised rate in the second quarter, the fastest since 2011, official data showed September 26 after the close of Indian markets.

“The US data is largely expected to be strong and investors have factored in the possibility of the Fed raising interest rates next year,” said Ashtosh Raina, head of foreign-exchange trading at HDFC Bank “The rupee is likely to keep to the 60-62 per dollar range unless something drastic were to happen.”

The rupee had opened at 61.33 and during intra-day trades it touched a high of 61.59 and a low of 61.32 to a dollar.

According to currency dealers there is also caution ahead of the Reserve Bank of India (RBI)’s bi-monthly monetary policy review to be detailed on Tuesday.

HDFC Bank