Mumbai: The rupee depreciated 0.36 percent on Thursday to touch 65 to a dollar, a level last seen on September 6, 2013. The rupee started to weaken since PBOC devalued yuan a couple of days ago although it (INR) had opened marginally higher at 64.72 per dollar against Wednesday's closing of 64.77.
Mohan Shenoi of Kotak Mahindra Bank said, "The devaluation of yuan on the back of weak exports from China has resulted in unwinding of yuan carry trades in particular against the euro. Asian currencies have come under pressure due to yuan depreciation."
"In response, rupee will also depreciate but gradually in a calibrated manner. The USD-INR is expected to trade on Thursday in a range of 64.60-65.10/dollar," he added.
The dollar fell to its lowest in about a month against a basket of major currencies, on doubts over whether the US Federal Reserve will raise interest rates in September given China's devaluation of the yuan.
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