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Rupee slips 3 paise to 4-month low of 65.20 ahead of key US Fed meet

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 Rupee slips 3 paise to 4-month low of 65.20 ahead of key US Fed meet
Foreign investors, however, put in Rs 3.44 billion on net basis in the domestic stock markets
The rupee slipped by 3 paise to finish at a four-month low of 65.20 against the US currency on Tuesday on some dollar buying by importers and banks ahead of the US Federal Reserve's key policy meet.The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 per cent from Monday's close of 65.17.
Meanwhile, the 30-share BSE Sensex rebounded by 73.64 points or 0.22 per cent at 32,996.76.The greenback's gains against major global currencies ahead of the US Federal Reserve's key policy meet that kicks off later in the day, in which it is expected to hike interest rates, weighed on the domestic unit, dealers said.
The rupee started on a negative note at the Interbank Foreign Exchange (forex) market and remained under pressure for the better part of the session on a firm dollar overseas.It finally settled at 65.20, revealing a loss of 3 paise, or 0.05 per cent. The rupee had closed at this level on November 16 last year.
On Monday, the rupee had tumbled 23 paise to close at 65.17 against the dollar due to concerns over a widening current account deficit.Foreign investors, however, put in Rs 3.44 billion on net basis in the domestic stock markets.The 10-year bond yield was at 7.608 per cent compared to its previous close of 7.607 per cent. Bond yields and prices move in opposite directions.The Reserve Bank of India on Tuesday fixed the reference rate of the rupee at 65.1993 against the US dollar and 80.4625 for the euro.
In cross currency trade, the rupee fell against the pound to close at 91.4942 from 90.5582 earlier. It also lost against the euro to finish at 80.4625 from 79.7750. The rupee traded at 61.33 per 100 Japanese yens from 61.50 on Monday.In the forward market, the benchmark six-month forward premium payable in August moved down to 122.50-124.50 paise against 124-126 paise earlier. The February 2019 contract eased to 240-242 paise against 243.50-245.50 previously.

The Business Standard, New Delhi, 21st March 2018

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