The bearish trend at Indian equity market owing to the de-notification of the currency and worsening of the global rate market conditions kept the domestic markets on tenterhooks.
At the Interbank Foreign Exchange Market, the local currency was trading down by 7 paise to 68.63 per dollar from a previous close of 68.56 per dollar.
The market experts opined that the rising US dollar has put tremendous pressure on the Indian rupee and it could be headed for 70 per USD if domestic conditions do not improve soon. The sharp strengthening of the dollar has also kept emerging currencies under pressure.
Meanwhile, the increase in the probability of the Fed rate hike in the December 2016 policy – pushed up the dollar index to 101.2 from 97.5 through November 2016 and low of 92.6 in May 2016.