Rupee weakens to three week low on dollar buying by banks, importers

The rupee ended at a three-week low on Monday due to dollar buying by banks and importers, especially oil importers.

The rupee had opened at 63.54 and during intra-day trades it touched a low of 63.67, and a high of 63.54 a dollar. It ended at 63.67 compared with Friday’s close of 63.47. It had ended at 63.85 on June 29 Stock Market Trading Tips
“There were talks about oil companies buying dollars. Besides that, public sector banks also bought the American currency,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.  

In foreign markets, the dollar hit a three-month high against a basket of major currencies after solid US inflation and housing data supported expectations for the Federal Reserve to raise interest rates in the coming months Himanshu Tiwari Astrologer

According to Bloomberg data, the one-month implied volatility — a measure of expected moves in the exchange rate used to price options — declined for a seventh day, falling nine basis points to 4.79 per cent in Mumbai, the lowest since February 2008. It is 400 basis points lower than this year’s high of 8.79 per cent reached in May.

“Lower crude prices have wiped out a large part of the dollar demand from the market,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services. “The rupee’s volatility has been managed well by the central bank through intervention Share Market Astrology