Rupee depreciates by 6 paise against US Dollar

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The rupee fell by six paise to Rs 66.61 against the US Dollar on 5 May due to demand for the USD from importers. The Rupee closed 13 paise lower at Rs 66.55 at the Interbank Foreign Exchange.

Dealers evaluated the rupee’s fall to rising demand for the US dollar and its strength against other foreign currencies. However, a higher opening in the domestic equity market capped the losses.

Meanwhile, the benchmark Bombay Stock Exchange Sensex rose 125.76 points, or 0.50 percent, to 25,227.49 in early session on 5 May.

Anindya Banerjee, a currency analyst at the Kotak Securities, said the Rupee might stay in the range of 67.50-68 in the coming months.

So far, even as the rupee has managed to cut almost entire losses it made against the US this year, the currency is still the worst-performing major Asian currency.

Experts, however, believe the referendum on Brexit (possibility of British withdrawal from EU) on 23 June and the direction of commodity, especially crude, would play a significant role in influencing the movement of the Indian rupee in the near future.