The Indian rupee on Monday has opened lower by 15 paise at 68.57 against the US dollar. This comes as strong US jobs data moderated expectations for a rate cut by Federal Reserve in coming policy meetings.
Rupee had closed at 68.42 a dollar on July 5 and was strengthened last week by 60 paise on optimism amid Union Budget and correction in crude oil prices.
After appreciation in the last three weeks, the currency could see some rangebound moves with minor correction in this week, given depreciation in other emerging markets currencies, experts say.
“We are of the view that the pair (rupee-dollar) would find near term support at 68. The rupee would find it tough to gain when other EM currencies are witnessing some depreciation. The pair is likely to trade in the range of 68.0-68.90 in the coming week,” Amit Gupta of ICICIdirect said.
Anand James, Chief Market Strategist of Geojit Financial Services said Fed Chairman Jerome Powell’s upcoming semi-annual testimony should keep rupee unstable against the US dollar next week.