The US Dollar Index (DX) rose around 0.2 percent on Wednesday as weak sentiments in the global markets due to rising concerns over Euro Zone debt worries boosted demand for the low-yielding dollar.
Dow Jones and S&P declined around 0.2 percent and 0.3 percent respectively yesterday. The index touched an intra-day high of 79.47 and closed at the level of 79.30 on Wednesday.
Dollar/INR
The Indian Rupee (INR) witnessed slight appreciation of around 0.1 percent in yesterday’s trading session. But sharp appreciation was resisted due to strength in the US dollar along with weak sentiments in the global markets which also hurt the domestic equities. Nifty and Sensex declined sharply by 1.8 percent and 1.6 percent respectively on Wednesday. The currency touched an intraday high of 49.12 and closed at 49.16 yesterday.
For the current month, FII inflows totaled at Rs 15956.20 crores till 22nd February 2012. While on a year to date basis, net capital inflows stood at Rs 26313.70 crores till 22nd February.
Outlook
The Indian Rupee is expected to trade with a depreciation bias today, on account of rise in risk aversion in the global markets coupled with a stronger dollar. Additionally, month-end dollar demand from the oil importers will also act as a negative factor for Rupee.
Euro/INR
Mounting concerns with respect to Greece debt worries, a stronger dollar, unfavourable economic data from Euro Zone front and choppy sentiments in the global markets led the Euro to end on a flat note on Wednesday.
French Consumer Price Index (CPI) declined by 0.4 percent in January as against a rise of 0.4 percent in December. French Flash Manufacturing Purchasing Managers' Index (PMI) was at 50.2-level in February from previous mark of 48.5 in last month. French Flash Services PMI declined by 2 points to 50.3 in February compared to 52.3-level in prior month.
German Flash Manufacturing PMI declined to 50.1 in current month as against 51-mark in previous month. German Flash Services PMI was at 52.6-level in February compared to 53.7-mark a month ago.
European Flash Manufacturing PMI stood at 49 in February from previous 48.8-level in January. European Flash Services PMI was at 49.4 in February when compared to 50.4 a month earlier. European Industrial New Orders increased by 1.9 percent in December as against a previous decline of 1.1 percent in November.
Outlook
The Euro is expected to trade lower today on the back of rising concerns over Euro Zone debt worries coupled with dollar strength.
GBP/INR
The GBP depreciated around 0.7 percent in yesterday’s trading session taking cues from a stronger dollar coupled with rise in risk aversion in the markets. The currency touched an intra-day low of 1.5647 and closed at 1.5665 on Wednesday.
Outlook
Today, we expect the GBP to trade with a negative bias, on the back of dollar strength and weak sentiments in the markets due to rising global economic concerns.
JPY/INR
The Japanese Yen depreciated by 0.7 percent on Wednesday and touched an intra-day low of 80.39. But further depreciation was not witnessed on account of weak sentiments in the global markets. The currency ended at the level of 80.26 on Wednesday.
Outlook
We expect the Yen to trade with an appreciation bias today, mainly on account of rise in risk aversion in the global markets which will increase demand for the low-yielding currency.
Courtesy:Angel Broking
