Angel Broking's report on currencies -
US Dollar Index
The US Dollar Index (DX) gained by 0.1 percent in yesterday’s trading session on the back of rise in risk aversion in the global market sentiments in the later part of the trade which led to increase in demand for the low yielding currency.
Further, expectations that US Federal Reserve will trim its bond buying program also supported an upside in the currency. The currency touched an intra-day high of 83.0 and closed at 82.80 on Tuesday. However, sharp upside in the currency was capped as a result of favorable economic data from the US.
Dollar/INR
The Indian Rupee appreciated by 0.5 percent in the yesterday’s trading session. The currency appreciated on account of restrictions imposed by the central bank of India which eased the concerns over the coun current account deficit.
Additionally, upbeat domestic market sentiments in the early part of the trade supported an upside in the currency. The currency touched an intra-day high of 56.40 and closed at 56.48 against dollar on Tuesday. However, sharp upside was capped as result of strength in the DX. Further, weak global markets in the later part of the trade restricted positive movement in the Rupee.
For the month of June 2013, FII outflows totaled at Rs.81.90 crores (USD 14.60 million) as on 4th June 2013. Year to date basis, net capital inflows stood at Rs.83,123.20 crores (USD 15,338.40 million) till 4 2013.
Outlook: From the intra-day perspective, we expect Indian Rupee to depreciate on the back of weak global market sentiments coupled with strength in the DX. Further, expectation of unfavorable services PMI data from the country will exert downside pressure on the currency.
US Dollar Index
The US Dollar Index (DX) gained by 0.1 percent in yesterday’s trading session on the back of rise in risk aversion in the global market sentiments in the later part of the trade which led to increase in demand for the low yielding currency.
Further, expectations that US Federal Reserve will trim its bond buying program also supported an upside in the currency. The currency touched an intra-day high of 83.0 and closed at 82.80 on Tuesday. However, sharp upside in the currency was capped as a result of favorable economic data from the US.
Dollar/INR
The Indian Rupee appreciated by 0.5 percent in the yesterday’s trading session. The currency appreciated on account of restrictions imposed by the central bank of India which eased the concerns over the coun current account deficit.
Additionally, upbeat domestic market sentiments in the early part of the trade supported an upside in the currency. The currency touched an intra-day high of 56.40 and closed at 56.48 against dollar on Tuesday. However, sharp upside was capped as result of strength in the DX. Further, weak global markets in the later part of the trade restricted positive movement in the Rupee.
For the month of June 2013, FII outflows totaled at Rs.81.90 crores (USD 14.60 million) as on 4th June 2013. Year to date basis, net capital inflows stood at Rs.83,123.20 crores (USD 15,338.40 million) till 4 2013.
Outlook: From the intra-day perspective, we expect Indian Rupee to depreciate on the back of weak global market sentiments coupled with strength in the DX. Further, expectation of unfavorable services PMI data from the country will exert downside pressure on the currency.
Source http://www.moneycontrol.com/news/brokerage-recos-currencies/expect-rupee-to-depreciateweak-global-cues-angel_891098.html
This post first appeared on Unu Sapte Cu 8300, Sau Mai Bine Zis..., please read the originial post: here
