Dollar pulls away from lows as it
awaits Fed statement
The dollar edged maximum
on Wednesday after falling down the previous day, when a
Russian
currency crisis took hold and supposition grew that the Federal
Reserve
might take a more cautious tone on monetary policy.
Rupee glide triggered by local
factors, not foreign fund exit
As investors shift funds
Global currencies are interfacing a rout as US on expectations of
maximum interest rates, and therefore better returns, in the world's
biggest economy. But there's a more nuanced story to the slide in the
rupee, one reason why there isn't the kind of panic that convoy the
local currency's sink in 2013.
One more thing, overseas
funds are not rush out of India. What's happening is that local
companies that binged on overseas borrowings and smug importers have
been spooked by global volatility and are now rushing to cover their
dollar exposure, pushing the rupee down, said currency traders.
On Wednesday, the rupee
closed at 63.62 to the US dollar after strike an intraday high of
63.88, the weakest in nearly 13 months.
"As the rupee has
depreciated below 62.20 levels, there has been major
stop-loss-related buying in the US dollar,".
Written by Unknown
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