Asian currencies weak on talks of Fed rate hike

The Indian currency has reversed its appreciating trend against the dollar and is now trading at Rs 67.83

Emerging market currencies dipped against the dollar which has been showing strength in recent times. Federal Reserve officials have said that the  rate hikes in the US are not going to be long time away. The Indian rupee lost around 20 paise to trade at 67.83 per dollar, while South Korea's won too lost heavily.


The euro was weak following the Brusells attack and the US dollar also appreciated against a basket of six major currencies. US Fed officials have mad statements that the central bank should consider another interest rate hike next month if the U.S. economy improves. 


Meanwhile, the Indian rupee also slipped to Rs 67.83. Post the budget, the Indian rupee has been appreciating on the back of strong foreign inflows from investors. The rupee had dipped close to the levels of Rs 69, and almost touched its all-time high of Rs 68.85 of three years ago, in the month February. 


Meanwhile, higher crude prices in the second half of FY17 could see the Indian rupee moderately depreciating towards the Rs 69 mark per dollar in the next 9-12 months, said a Citigroup research report. 


Source: Agencies


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