Flat start! Rupee trades at 67.95/$

In international markets, US dollar continues to lose ground against the basket of currencies, with Dollar index moving below 96 levels. The currency touched a high and low of 68.09 and 68.20 respectively.

Indian Rupee opened flat at 67.90/$ in early trade on Wednesday as against the previous close of 67.90/$. On macroeconomic side, Indian economy grew 7.3% during the third quarter of the fiscal year 2015‐16, slower than the upwardly revised reading of 7.7% during the prior quarter. Indian government has projected growth for FY2015‐ 16 at 7.6%, better than the growth rate of 7.2% during the previous fiscal year.

In international markets, US dollar continues to lose ground against the basket of currencies, with Dollar index moving below 96 levels. Yen has categorically surged to multi‐ month highs, as investors remain skeptical negative interest rates.  Negative interest rate policy adopted by BOJ and ECB is leading to a perception that central banks are running out of ammunition in order to combat deflation. Markets are now pricing in the fact that prevalent deterioration inthe global economic landscape will compel US Fed to do a volte face on the process of policy normalization.

Tomorrow, market focus will be accentuated on Fed chief Janet Yellen testimony to US Senate. It is widely expected that Yellen will remain dovish, given the prevalent economic landscape. This will weigh on US dollar and we will not be surprised to see US dollar index moving towards 94 levels.


On Tuesday, the rupee ended at 67.90/$, weaker by 4 paise from its previous close of 67.94/$ on Monday. The currency touched a high and low of 68.09 and 68.20 respectively.The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.16 and for Euro stood at 76.53 on February 5, 2016. While, the RBI’s reference rate for the Yen stood at 59.39, the reference rate for the Great Britain Pound (GBP) stood at 98.2696.