The rupee jumped 28 paise to 66.27 against the US dollar in early trade on Wednesday in line with the firm trend seen in other Asian currency markets.The domestic currency had closed 9 paise higher at 66.55 against the greenback on Monday. The domestic currency market was closed on Tuesday on account of Mahavir Jayanti.
In the absence of major data releases, both debt and currency markets may extend their horizontal movement. The rupee is likely to hover in the range of 66.30-67.10/dollar over the coming week,”said India Ratings and Research in a note.
Most Asian currencies were trading higher. The Malaysian ringgit jumped 0.87 per cent to 3.85 against the US dollar. The Korean won gained 0.47 per cent to 1130.94 against the grenback.
The dollar index, which tracks the movement of dollar against a abasket of six major world currencies, rose 0.09 per cent to 94.06.
The domestic currency has depreciated 0.60 per cent against the greenback so far this calendar. This is against a 11.32 per cent appreciation in Malaysian ringgit, 10.38 per cent rise in the Japanese yen and 5-6 per cent jump in the Indonesian rupiah and the Singapore dollar against the US currency year-to-date.
“The rupee is likely to depreciate at around 2-5 per cent CAGR over the long term. However, this trend will fluctuate depending on near-term outflow and inflow of capital,”said Vikas Gupta, CIO, ArthVeda Capital.