Rupee may trade in 53.90-54.45 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 53.90-54.45/USD.

• Rupee hit new life time lows of 54.52 as the global scenario worsened. Investors rushed to the safety of the dollar. The rupee spot ended the day at 54.49
• Nifty plunged on Wednesday as markets globally felt the tremors of the political disturbance in Greece. It lost by 84 points to close the day at 4858 levels
• The Dollar Index ended flattish to slightly lower after Euro recovered from four month lows. It finally settled at 81.21 level
• The call rate closed higher at 8.35 % as demand for short-term money remained higher
• India’s 10-year yields ended lower in the last trading session, finally ending at 8.50%, down 2 bps
• In the domestic currency markets, the rupee lost against the GBP, EUR and JPY by 0.62, 0.37, and 0.60 percent, respectively.

Outlook
Asian stocks gained on Thursday, snapping a six-day losing streak. A rise in US industrial production and a growth in Japan’s GDP added to investor confidence on Thursday. Japan’s GDP rose 4.1% in the first quarter as reconstruction spending boosted the economy. The SGX Nifty is trading higher by 33 points, tracking other peers. These factors point to a positive opening for the rupee.

On the economic front, there are a lot of data releases expected from the US. The Initial Jobless Claims and leading indicators will be closely watched. The Claims are expected to show a downtick that could support the greenback, whereas leading indicators could put a lid to those gains as they fall to 0.10% for the month of April. There aren't any major data releases from the Euro-zone.

Today, the rupee could be seen gaining on improved investor sentiment after the US and Japan economic data grew faster than expected. The euro has also recovered from its four-month lows and is likely to support the rupee. However, some gains could be limited as the demand for the dollar still remains high. The likely price range for the day is Rs/US$ 53.90-54.45.

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