The Indian rupee recovered from its intraday lows on Friday, to close stronger than its previous close, on possible intervention by the Reserve Bank of India (RBI) even as other Asian currencies weakened against the dollar and the domestic stock market fell.
Rupee ended at 62.155 a dollar, up 0.18% from its previous close of 62.2675. The domestic currency had opened at 62.355 and slid to 62.56 in the day.
Lower manufacturing data and a weak equity market also weighed on the rupee. The manufacturing purchasing managers’ index (PMI) released by HSBC Holdings Plc and Markit Economics on Thursday was at 50.7 in December, lower than November’s 51.3. A figure above 50 indicates expansion.
“Rupee weakness will continue for quite some time,” said Pramit Brahmbhatt, chief executive officer of Alpari Financial Services (India) Pvt. Ltd.
“Both the US and the Japanese economies are recovering and soon crude prices will shoot up. This year is going to be a dollar year,” said Brahmbhatt, adding rupee should touch 63.50 a dollar by January end.
From January 2013 to date, the rupee has weakened 11.52% and is the third highest loser in Asia after Indonesian rupiah and Japanese yen.
Overnight though, the dollar index, fell, trading at 80.583, down from the previous close of 80.63.
India’s benchmark equity index Sensex closed at 20,832.84, 20851.33, down 0.18%, or 37 points, from its previous close.
Source:- livemint.com
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