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Rupee At 2-Week High, May Shift Away From 65-Mark, Say Experts: 5 Points

The dollar's movement after US retail sales - which fell for the third straight month in February - would affect rupee, says an analyst.

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Rupee At 2-Week High, May Shift Away From 65-Mark, Say Experts: 5 Points

The RBI had fixed the reference rate of the rupee at 64.9875 against the US dollar.

The rupee on Wednesday ended at a two-week high of 64.83 against the US dollar following US inflation data and the 'Rexit'. For Thursday, US retail sales data - which have fallen for the third straight month, may guide the US dollar movement and in turn, affect the domestic currency, said experts. The rupee traded almost flat in most part of the day but fag-end dollar selling helped the local currency extend gains for the third day in a row. The dollar US weakened against major currencies owing to US inflation data and the 'Rexit'.
Here are 5 things to know about rupee's movement:
  1. The rupee moved in a range of 65.06 to 64.83 in day trade amid losses in the stock markets. It finally settled up by 6 paise or 0.09 per cent at 64.83 per dollar, the highest closing level since February 27.
  2. The dollar fell against the euro and the British pound after lower inflation data and the US President Donald Trump sacked Secretary of State Rex Tillerson, a development which was termed as 'Rexit'. The dollar index too fell by 0.1 per cent, reported news agency Press Trust of India (PTI).
  3. "US dollar looks to be stabilizing after widening fiscal numbers, but response to retail sales data will hold the key for directional moves in US dollar, and help rupee shift away from the 65 mark," said Anand James, Chief Market Strategist at Geojit Financial Services.
  4. US retail sales fell for a third straight month in February as households cut back on purchases of motor vehicles and other big-ticket items, pointing to a slowdown in economic growth in the first quarter, according to a report by news agency Reuters. The US Commerce Department said retail sales slipped 0.1 per cent last month.
  5. The RBI had fixed the reference rate of the rupee at 64.9875 against the US dollar and 80.5845 for the euro. (With Agency Inputs)


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