According to Angel Broking, Indian Rupee is expected to trade on a negative note taking cues from weak global and domestic market sentiments coupled with strength in the DX.
Angel Broking's report on currency
The US Dollar Index (DX) traded on a flat note and gained marginally yesterday on the back of decline in US existing home sales data. Further, rise in risk aversion in market sentiments led to increase in demand for the low yielding currency. Unfavorable economic data from US indicated that QE tapering program would be delayed by the Federal Reserve which capped sharp gains in the currency. The DX touched an intra-day high of 79.88 and closed at 79.75 on Monday.
Outlook: In today’s session, we expect Indian Rupee to trade on a negative note taking cues from weak global and domestic market sentiments coupled with strength in the DX. Further, dollar demand from private oil firms and importers will exert downside pressure on the currency. However, sharp downside in the currency will be cushioned or reversal can be seen as a result of rising inflow of foreign funds.
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