The rupee today closed marginally down at 64.94 against the US currency due to continued foreign fund outflows, weak trade data and expectations of a rate hike by the US Federal Reserve.
The rupee today closed marginally down at 64.94 against the US currency due to continued foreign fund outflows, weak trade data and expectations of a rate hike by the US Federal Reserve. The domestic unit opened lower at 64.95 per dollar as against yesterday's close of 64.93 at the inter-bank foreign exchange on unabated foreign fund outflows. The domestic unit hovered between 64.85 and 64.99 during the day before ending at 64.94, down by 1 paisa.
"Trade data showing meek expansion in exports, and dollar eyeing new FED chairman's first rate decision ensured that rupee continue to be restricted to tight trading range," Anand James, Chief Market Strategist at Geojit Financial Services said. The dollar's weakness against some major currencies overseas, however, limited the rupee's losses at the forex market, traders said. The data released by the commerce ministry showed exports grew by 4.5 percent in February, the lowest expansion in the last four months, to USD 25.8 billion as shipments of engineering, textiles and gems and jewellery declined, while trade deficit narrowed to a five-month low of USD 12 billion.
The US Federal Reserve is widely expected to tighten the rates next week despite a disappointing February retail sales data and a soft inflation reading.
