Moneycontrol
Oct 17, 2016 11:59 AM IST IST | Source: Moneycontrol.com

Rupee is likely to trade negative: Angel Broking

According to Angel Broking, Rupee is likely to trade negative as the hawkish tone in the US Fed Chairwoman‘s speech and FOMC Meeting Minutes will boost the demand for the DX in turn keeping the INR pressurized.

Angel Broking's report on Currencies

US DOLLAR INDEX (USD)

The US Dollar Index traded higher by more than 1 percent in the  last week’s trading session. Reason for the same could be  attributed to the robust release of economic datasets from the  nation like  retail sales, unemployment claims and Producer Price  Index from the nation. Moreover, the hawkish tone in the US Fed  Chairwoman’s speech and FOMC Meeting Minutes boosted the  demand for the DX. Both indicated at the possibility of a rate hike  in the near future.  The policy members were divided in their views over the labor  market ultimately agreeing to US Fed Chairwoman’s argument for  holding the interest rates at its present levels for now. Several  voting Fed policymakers thought rates should rise 'relatively  soon'. As per Fed funds futures, traders see about 11 percent  chance of rate hike in Nov’16 and about 66 pct chance in  December.  All the above factors boosted the demand for the DX  which made a weekly high of 98.12 and closed at 98.00 levels on  Friday.


OUTLOOK

Rupee is likely to trade negative as the hawkish tone in the US  Fed Chairwoman’s speech and FOMC Meeting Minutes will boost  the demand for the DX in turn keeping the INR pressurized.

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.
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