Rupee may trade in 55.70-56.40 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 55.70-56.40/USD.
Karvy Stock Broking has come out with its report on currency. As per the research firm, rupee range for the day is seen between 55.70-56.40/USD.
- The rupee continued another day of fall as it went on to make new lifetime lows of 56.17 following weaker equities and sustained dollar buying. The rupee spot ended the day at 55.99
- Nifty followed other peers and remained under pressure the whole day. It lost by 50 points to close the day at 4860 levels
- The Dollar Index gained on Wednesday after news of Greece exiting Euro zone hit the markets and Spain becomes next target for debt crisis. It finally settled at 81.96 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 8.48%, down 2 bps
- In the domestic currency markets, the rupee lost against the GBP, EUR and JPY by 0.55, 0.69, and 1.09 percent, respectively.
Outlook
Asian stocks are jumping between gains and losses, as no resolution was found in the European economic summit. The euro has fallen to new yearly lows and is trading below the 1.26 mark. This will pressure the rupee more today. The SGX Nifty is trading higher by 32 points, tracking other peers.
On the economic front, we have Initial Jobless Claims from the US, which are expected to rise to 368K and could be slightly positive for the US dollar. From the EU however, there are a lot of data releases; the major ones being the PMI numbers which could come in slightly lower. This could hurt the euro in the afternoon session.Today, the rupee is expected to remain under pressure and post a new lifetime low as the dollar continues to gain globally. The uncertainty in the Euro-zone and the month-end demand for dollars could further add to the pressure. Some respite could be felt by the higher equities and if the RBI looks to intervene. The likely price range for the day is Rs/US$ 55.70-56.40.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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