Mar 15, 2013, 09.48 AM | Source: Moneycontrol.com
Karvy Stock Broking has come out with its report on currency. The research firm expects USDINR to trade in a range with down ward bias and recommend selling at higher levels.
, Karvy Stock Broking |
On Thursday, India released inflation rate which increased from 6.6percent to 6.84percent. This had supported downside in rupee. the rupee depreciated 0.11percent to close at 54.3662 against USD.
The Asian equities were end on almost higher note on the back of Bank of Japan Governor has pledge to go for further easing to end deflation the similar trend was followed by domestic indices, Sensex rose by 1.07percent to close at 19570.44 and Nifty inched up by 0.99percent to 5908.95.
Euro area employment rate slow down from last month. However positive development EU summit supported euro to legged higher at $1.3005, up by 0.34percent and European equities to end on higher note.The US current account deficit widened while the producer prices and jobless claims remained favorable for the US economy. Dollar index moved down by 0.34percent to close at 82.526. The bond yield moved down by 0.51percent to close at 7.865 from last settlement 7.904 on the back of higher inflation rate .
This morning Asian equities are trading on a positive note, taking cues from strong US equities over night. The euro is on strong note at $1.3015 as European Union summit endorsed plans for “structural” assessment of national budgets and granting extra time to countries such as France, Spain and Portugal to bring down deficits. These factors should support rupee to trade on a stronger note in today's market session.
The spread between US and Indian bond yield has widened which implies weaker dollar and that might support rupee. From the data front, Europe will release CPI core index which is likely to increase and that might support the shared currency. Data expectation from US in the form of industrial production and CPI index are also likely to support USD. Overall we expect rupee to stay on strong note for today's trading session.
On Thursday, rupee witnessed a volatile session and ended on a flat note. In the early hours it hit a high of 54.68 and thereafter it tumbled to the low of 54.31 to finally settle at 54.49. On technical front, rupee formed a Doji candle stick pattern on daily chart and momentum indicator RSI-14 also remained stable. By above observations we expect rupee to trade in a range with down ward bias and we recommend selling at higher levels.
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