"I fall in the camp of those who believe the rupee is overvalued, but not to a large extent. As far as the governor's recent comments, I think it is extremely difficult at this point to take a call on the rupee at present," said Anis Chakravarty, Deloitte India. From that perspective, if you look at some of the export numbers, they do have picked up and in relation to exports, if you look at the net numbers, the trade data is looking much better than it was in the past. NEW DELHI: The rupee fell 2 paise to 67.22 against the US dollar in early trade on Thursday amid a rally in the greenback globally on rising hope of rate hike by the US Fed amid recent set of healthy inflation and jobs market data.The rupee had ended 10 paise lower at 67.20 on Wednesday on fresh dollar demand from importers and banks.Fed funds futures rates, as suggested by CME Group's FedWatch tool, reveal that investors see a greater than 50 per cent chance that the Fed will raise interest rates at least once by its December meeting.Wednesday was the first time chances of a rate hike have moved above 50 per cent since Britain's surprise vote to leave the European Union in June, Reuters said in a report.The dollar index , which measures the movement of dollar against a basket of six major world currencies, stood at 97.04.RBI governor Raghuram Rajan recently said that the prevailing level of the rupee is pretty reasonable and any step taken to devalue it further may trigger rise in inflationary pressures.

Source: Economic Times July 21, 2016 04:35 UTC