The US Dollar Index (DX) strengthened around 0.1 percent in yesterday’s trading session on account of mixed sentiments in the global markets. Fall in the Euro also provided support for the dollar. However, sharp gains were capped due to favorable unemployment claims data from the country. The index touched an intra-day high of 79.32 and closed at 79.09 on Thursday.
Dollar/INR
The Indian Rupee (INR) appreciated slightly around 0.2 percent in On Thursday, taking cues from rise in domestic equities. Nifty and Sensex rose around 0.7 percent and around 0.8 percent respectively on yesterday.
Additionally, rising capital inflows in the country also acted as a supportive factor for the currency. However, a stronger dollar resisted sharp appreciation in the INR. The currency touched an intra-day high of 48.94 and closed at the level of 49.02 on Thursday.
For the current month, FII inflows totaled at Rs 2737.70 crores till 2nd February 2012. While on a year to date basis, net capital inflows stood at Rs 13095.40 crores till 2nd 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.
Courtesy:Angel Broking
