The Indian Rupee (INR) witnesed appreciation of around 0.3 percent in yesterday’s trading session and touched an intra-day high of 49.10. The currency ended its trading session at levels of 49.14 on Monday.
For the current month, FII inflows totaled at Rs 13867 crores till 17th February 2012. While on a year to date basis, net capital inflows stood at Rs 24224.60 crores till 17th 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.
However, any positive outcome from the meeting amongst the Euro Zone leaders with respect to Greece bailout decision may lead to reversal in the markets today.
Euro/INR
Rising optimism over Greece bailout package led revival in the global markets on Monday. Additionally, China’s decision to cut the reserve requirement ratio also helped further upside in the markets yesterday.
This helped the Euro to trade higher by 0.7 percent on Monday. The Euro touched an intra-day high of 1.3276 and ended its trading session at 1.3240 on Monday.
Outlook
We expect the Euro to decline today mainly on account of rising tensions over Euro Zone debt worries coupled with a stronger dollar.
GBP/INR
The Pound appreciated by 0.1 percent yesterday taking cues from a favorable economic data from the country. The currency touched an intra-day high of 1.5880 and closed at 1.5847 on Monday.
UK’s Rightmove HPI increased to 4.1 percent in February as against a decline of 0.8 percent in last month.
Outlook
The Pound is expected to trade lower today mainly taking cues from dollar strength along with rise in risk aversion in the markets.
JPY/INR
The Japanese Yen depreciated by 0.2 percent on Monday, on the back of unfavorable economic data from the country coupled with revival in the global markets which reduced demand for low-yielding currency. The Yen touched an intra-day low of 79.88 and closed at 79.61 yesterday.
Japan’s Trade Balance was at a deficit of 0.61 trillion Yen in January from previous deficit of 0.57 trillion Yen in December.
Outlook
The Yen is expected to trade with an appreciation bias today, taking cues from rise in risk aversion which will fuel demand for the low-yielding currency.
Courtesy:Angel Broking
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