- Indian rupee falls to 62.09 vs US dollar, shuns RBI, waits on FedBSE Sensex falls over 150 pts but TCS and Infosys gain as US Fed starts taperingIndian rupee extends losses for 3rd straight day, drops by 37 paise to 62.46 vs dollarBSE Sensex falls 151 pts as Fed taper ignites foreign investor sales concern
Indian rupee weakened towards 62.48 on spot on the back of broad based weakness amongst the Asian and emerging market currencies against the US Dollar.
US Fedís decision to taper 10 billion has led to weakness in the emerging markets currencies.
However, a year-end coupled with improved current account outlook and active intervention from the central bank means that Indian rupee might not weaken the way it did in summer.
We expect Indian rupee in a range of 61.00 to 64.00 and this should play out over the medium-term, with markets within 61.70/63.30 range for most of that time.
By Anindya Banerjee, currency analyst, Kotak Securities
NOTE: Views are of author alone.