MUMBAI: The Indian Rupee depreciated around 0.1 percent in yesterday’s trading session. The currency depreciated on the back of month end dollar demand from private oil firms and importers. A private chemical firm bought around $200 million in early trade coupled with state run banks bought dollars to meet the payment for defense expenditure.
Sharp downside in the currency was cushioned on account of strong inflow of foreign funds coupled with selling of dollars by exporters at 61.80-levels. The Indian Rupee touched an intra-day low of 61.83 and closed at 61.64 on Tuesday.
For the month of October 2013, FII inflows totaled at Rs.9671.90 crores ($1572.70 million) as on 22nd October 2013. Year to date basis, net capital inflows stood at Rs.82899.30 crores ($15218.20 million) till 22nd October 2013.
In today’s session, we expect Indian Rupee to trade on a positive note taking cues from upbeat global and domestic market sentiments along with weakness in the DX. Further, expectation from Finance Ministry for rise in forex reserves coupled with selling of dollars by exporters will support an upside in the currency. Month end dollar demand from private oil firms and importers will cap sharp upside in the currency.
Courtesy: Angel Commodities