The Indian Rupee is expected to trade steady on Thursday amid risk aversion in
and expectations of recovery in US Dollar. The domestic currency may track gains in regional peers as China’s stimulus plan bolsters the outlook for Asian economies. In the previous session, rupee consolidated in a narrow range and depreciated against the US dollar. At the Interbank foreign exchange market, the local unit opened at 79.84 per dollar. It hovered in a range of 79.68 to 79.87 before finally settling at 79.85, down 2 Paise over its previous close. Surge in crude oil prices and mixed to negative domestic equity markets restricted rupee’s movement.
The Indian rupee may track gains in regional peers as China’s stimulus plan bolsters the outlook for Asian economies. Asian currencies strengthen against the US dollar in the morning Asian session amid risk-on sentiment driven by gains in regional equity markets. Implied opening from forwards suggests the spot USDINR may start trading around 79.75. On Wednesday, spot USDINR fell 5 paise to 79.82 following positive regional currency and exporter’s dollar selling. Technically, the pair is finding it difficult to cross the psychological level of 80 while on the downside 79.70 and 79.40 act as strong support areas.”
“Indian rupee appreciated by 0.11% today on weak US Dollar and FII inflows. However, surge in crude oil prices and mixed to negative domestic equity markets capped sharp gains. US Dollar declined on disappointing economic data from US. Services PMI declined unexpectedly to 44.1 in August from 47.3 in July while manufacturing PMI declined to 51.3 from 52.2. New home sales declined by 12.6% to 511,000 in July from 585,000 in June.