The Indian rupee opened flat at 68.72 per dollar on Friday versus previous close 68.73. Bhaskar Panda of HDFC Bank said, High volatility and unidirectional move is the order of the day in the USD-INR market. A surging dollar index, spectre of US interest rate hike have seen net FII outflow to the tune of USD 4 billion leading to almost 4 percent depreciation of the rupee.
It’s overdone. Hence, I expect USD-INR pair to consolidate between 68.60-69/dollar,” he added. The government rushed to allay fears after the rupee drops to an all-time low of 68.86 to the dollar before recovering on perceived RBI intervention. The commerce minister said, rupee fluctuation has been factored in by exporters.
The government has no immediate plans to intervene in the currency markets,” he added. The dollar approached an eight-month high against the yen after government reports Wednesday showed US economic growth remains intact, supporting the case for an increase in interest rates. The greenback gained against all of peers as the odds that the Federal Reserve will tighten at its December meeting rose to 100 percent.