Rupee depreciates for the third consecutive session 18 paise to close at 73.60 against the US dollar on Wednesday amid a strong greenback overseas and a muted trend in domestic equities.
Dilip Parmar researcher analyst at HDFC securities says that “Indian rupee depreciated for the third day in a row following the rebound in dollar against major trading currencies. Large corporate outflows rise in global yields and hedging dollar demand weighed on local currency”.
Interbank foreign exchange market the local currency opened week at 73.48 and dropped to a low of 73.70 intra-day. It finally finished at 73.60 against the green back, down 18 paise over its previous close. In the previous session the rupee had closed at 73.42.
Other Asian currencies came under pressure after the dollar index continued its upward momentum ahead of the European Central Bank meeting on Thursday and weighed on sentiments back home stated by Sriram Iyer, senior research analyst at Reliance Securities.