Rupee fell to 61.65 in early trades after a day holiday. The currency weakened mainly on global cues and widened trade deficit.
On Tuesday evening Ministry of Statistics released trade balance data which widen by 4.41b rupees mainly due to increase in import of Gold. Total imports increased by 26% while exports by 2.7%. Trade gap increased more than double compare to last year.
At global market dollar fell against major currencies as U.S. economic data came below estimations yesterday. It has also been changing views of investors on first interest rate hike by Fed. Now some players are expecting first hike at the end of 2015. Dollar index is down by 0.12% to 85.04 at 0700 GMT. The dollar has a high risk of falling versus the yen and adding to its biggest slide in six months, according to JPMorgan Chase & Co., with global markets roiled by concerns that growth and inflation are slowing.
Asian markets were down on market opening tracking the U.S. market. Market players are also concerned about declining growth of Eurozone that could also slow down global markets.
We may see some recovery in dollar if todays economic releases of jobless claims, industrial production and philly fed manufacturing index beat expectations. Rupee is likely to remain in range of 60.20 to 60.80 in this week looking at domestic as well as macro fundamentals.