Rupee may trade in 52.35-52.70 range:Karvy Stock Broking

Karvy Stock Broking has come out with its report on currency. As per the research firm, rupee range for the day is seen between 552.35-52.70/USD.

• Thursday was a day full of headless trade as rupee remained in a range and ended the day flat. The rupee spot ended the day at 52.55
• The domestic equities had a lackluster trading session on expiry day. Nifty posted meager losses of just 12 points to end the day at 5189 levels
• The Dollar Index closed almost flat in yesterday’s session as dollar didn’t find any major cues. It finally settled at 79.05 level
• The call rate closed slightly lower at 8.10% as demand for short-term money remained lower
• India’s 10-year yields rose higher in the last trading session, finally ending at 8.64%, up 2 bps
• In the domestic currency markets, the rupee lost against the GBP, EUR and JPY by 0.45, 0.21, and 0.12 percent, respectively.

Outlook: Asian markets are trading mixed in morning trade after Spain’s credit rating was cut by Standard & Poor’s on concerns that the nation will have to provide further support to the banking sector. However, declines are limited following US economic data and better corporate results. The SGX Nifty is trading slightly higher by 10 points, tracking other peers. These factors point to a flattish opening for the rupee.

On the economic front, in the US, there are a lot of data releases, the major ones being the GDP Q/Q (annualized) and Personal Consumption. Both could come in slightly weaker for the greenback. From the Euro-zone, the Import Price Index is expected to come in marginally lower at 0.9%. Another major economic event would be the BOJ target rate, which is expected to remain unchanged at 0.10%.

Today, the rupee is expected to remain range-bound as it could be marginally stronger on positive global cues. However, month-end dollar demand may cap the upside for the currency. The likely price range for the day is seen as Rs/US$ 52.35-52.70.

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