Rupee drops 28 paise as Fed scales back QE3

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, December 19, 2013, 9:55 [IST]

The rupee was trading weak today and dropped 28 paise, as the US Federal Reserve partially withdrew its quantitative easing programme (QE3). To know what QE3 is click here.

The rupee was last trading at Rs 62.39 to the dollar.

The US Federal Reserve late on Wednesday said that it was scaling back its QE3 programme by $10 billion to $75 billion.

This is certainly not good news for emerging markets, as partial withdrawal of stimulus or QE3 means lesser liquidity and dollar inflows into the Indian stock markets.

This tends to also impact currencies of emerging markets, like India which weakened following the US Federal Reserve's decision.

The Indian stock markets also reacted negatively and were trading lower following the US Fed decision. Check currency rates here

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