The US Dollar Index (DX) weakened around 0.4 percent on Tuesday on account of Greece bailout agreement. However, sharp decline was cushioned as despite the bailout concerns over Greece still remains which led mixed sentiments in the global markets yesterday. The index touched an intra-day low of 78.90 and ended its trading session at the level of 79.14 on Tuesday.
Dollar/INR
The Indian Rupee (INR) depreciated slightly around 0.1 percent on Tuesday and touched an intra-day low of 49.32. However, sharp depreciation was not witnessed due to weakness in the US dollar and positive sentiments in the domestic markets yesterday. The Nifty and Sensex rose around 0.8 percent each on Tuesday. The currency ended its trading session at the level of 49.21 yesterday.
For the current month, FII inflows totaled at Rs 14461.60 crores till 21st February 2012. While on a year to date basis, net capital inflows stood at Rs 24819.20 crores till 21st February.
Outlook
We expect the Indian Rupee to come under pressure today, on the back of poor sentiments in the global markets which will lead downside in domestic equities too. Additionally, a stronger dollar will also act as a negative factor for the currency.
Euro/INR
The Euro ended on a flat note in yesterday’s trading session as despite the approval of the rescue package as concerns with respect to Greece debt tensions still persists which led mixed sentiments in the global markets.
The major concerns are that the austerity measures forced on Greece will deteriorate its already weak economy thus making it harder to repay its debts. The currency touched an intra-day low of 1.3184 and closed at 1.3238 on Tuesday. European Consumer Confidence index stood at -20 in January as against previous mark of -21 in December.
Outlook
The Euro is expected to trade with a negative bias today, on the back of escalating worries with respect to Europe’s debt crisis coupled with dollar strength.
GBP/INR
The Pound depreciated by 0.4 percent yesterday taking cues from unfavorable economic data from the country. The currency touched an intra-day low of 1.5770 and closed at 1.5784 on Tuesday.
UK's Public Sector Net Borrowing declined by 7.8 billion Pounds in January as against a previous rise of 10.8 billion Pounds in December.
Outlook
We expect the Pound to trade lower today, on account of concerns over global economy along with mixed sentiments in the markets.
JPY/INR
The Japanese Yen depreciated slightly by 0.1 percent in yesterday’s trading session and touched an intra-day low of 79.84. However, sharp depreciation was resisted due to choppy sentiments in the global markets. The currency closed its trading session at the level of 79.69 on Tuesday.
Japan’s All Industries Activity increased by 1.3 percent in December as against a decline of 1 percent a month ago.
Outlook
We expect the Yen to trade with an appreciation bias mainly on account of rise in risk aversion in the global markets which will boost demand for the low-yielding currency.
Courtesy:Angel Broking
