NEW DELHI: Snapping its 7 day losing streak, the rupee appreciated by 4 paise to 66.40 against the US dollar on Tuesday morning, tracking gains seen in other Asian currencies.The domestic currency had dropped 68 paise to close at a nearly eight-week low of 66.44 against the greenback in the previous session on persistent dollar demand from banks and importers.
Most Asian currencies were trading firm on Tuesday morning. The Taiwanese dollar was up 0.54 per cent, Indonesian rupiah advanced 0.17 per cent and the Thai baht gained 0.24 per cent against the greenback. The Korean won and Japanese yen were almost flat.

The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, stood at 99.13.
“We believe several overarching global factors coupled with domestic fragilities could spell bearishness on the rupee and bonds in this holiday-truncated week. The rupee is expected to trade between 66.0-66.50 to the dollar this week before consolidating above 66,” India Ratings said in a note.

“We continue to expect RBI to hold rupee at 65 to the dollar as seasonality turns in favour of the currency into March,” foreign brokerage BofA-ML said in another note.

Source:http://economictimes.indiatimes.com/

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