The US Dollar Index (DX) weakened slightly around 0.1 percent on Monday, as Greece parliament approved austerity measures in order to secure a second bailout package and this led US markets to end on a positive note yesterday.
This affected demand for the low-yielding dollar on Monday. The index touched an intra-day low of 78.72 and closed its trading session above the 79-mark yesterday.
Dollar/INR
The Indian Rupee (INR) appreciated around 0.4 percent in yesterday’s trading session taking cues from dollar weakness coupled with upbeat sentiments in the global markets which also help rise in domestic equities. Increasing capital inflows in the country also acted as a positive factor for the currency. The Rupee touched an intra-day high of 49.12 and closed at the level of 49.14 on Monday.
For the current month, FII inflows totaled at Rs 9887.40 crores till 13th February 2012. While on a year to date basis, net capital inflows stood at Rs 20245 crores till 13th 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
