The sensitivity of Asian currencies, including the Indian rupee to the US dollar has 'fallen' this year and the INR is expected to end the year at 61 despite a strong US dollar, a Bank of America Merrill Lynch report says.
The rupee closed one paisa down at 60.82 against the US dollar in the previous session. Reuters. SummaryThe rupee fell by 11 paise to 60.93 against the US dollar in early trade today at the Interbank Foreign Exchange.
India's rupee fell the most in more than a month and government bonds declined on speculation an improving U.S. economy will prompt the Federal Reserve to bring forward its timetable for increasing interest rates.
Tuesday's closing level is the rupee's weakest level in a week as it had closed at 61.05 on September 16. Demand for the Greenback from importers, mainly oil refiners, to meet their month-end requirements weighed on the the local unit.
The Indian rupee opened flat on Monday at 60.85 per dollar versus 60.81 Friday. The dollar rose against a basket of major currencies on Friday as investors bet that US interest rates would rise more quickly than expected.