Rupee may trade in 53.25-53.75 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 53.25-53.75/USD.

• On Thursday rupee hit fresh four monthly lows on back of weaker equities and higher demand for dollars by importers and OMC. The rupee spot ended the day at 53.41
• On Thursday domestic indices sank following weaker earnings. Nifty posted loss of 50 points to end the day at 5188 levels
• The Dollar Index closed lower slightly higher after Euro lost as ECB kept rates unchanged. It finally settled at 79.18 level
• The call rate closed lower at 7.90 % as demand for short-term money remained lower
• India’s 10-year yields ended lower in the last trading session, finally ending at 8.62%, down 2 bps
• In the domestic currency markets, the rupee lost against the GBP, EUR and JPY by 0.80, 0.81, and 0.88 percent, respectively.

Outlook
Asian stocks are declining for the second consecutive day after another disappointment from the US data. This has further fuelled fears that the world’s largest economy may be faltering. The Euro is steady today after the ECB kept rates unchanged and hinted at no further easing. The SGX Nifty is trading lower by 31 points, tracking other peers. These factors point to a negative opening for the rupee.

On the U.S economic front, there are a lot of data releases, the major ones being the unemployment rate and the Change in Non-farm Payrolls, both of which would be closely watched. The rate is expected to remain unchanged at 8.2%, whereas we could see a rise in non-farm payrolls, driving the greenback higher in the evening session. From the Euro-zone, PMI services would be closely watched as they are expected to come in slightly lower at 49.6.

Today, the rupee is expected to continue another days fall against the dollar. Dollar demand by importers and the RBI keeping away from intervention are also hurting the rupee. Weaker global equities and the strength in the dollar globally are also expected to weigh on the currency. The likely price range for the day is Rs/US$53.25-53.75.

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