USDINR may trade in 52.95-53.25 range in spot: Nirmal Bang

Nirmal Bang has come out with its report on currency. According to the research firm the likely range for USDINR pair to trade in spot is 52.95-53.25.

The European Central Bank bought just under half a billion euros worth government bonds over the Christmas period, keeping its purchases low and leaving markets wondering how it will use the controversial programme in the coming year. The latest purchases of 462 million euros are a small increase on the 19 million it spent the week before, but a fraction of what it had been spending until recently. Spain's public deficit for 2011 may be higher than the 8 percent of GDP forecast by the new government, the economy minister said on Monday, fuelling fears the country faces a prolonged period of tight budgets and economic contraction. German government bonds fell yesterday, reversing some of the rally seen late in 2011, but with major markets centres closed trading was extremely thin and demand for Bunds was not expected to slow in the medium term. The Indian rupee fell in its first session of 2012 on demand from oil importers, though losses were limited by a turnaround in domestic stocks and dollar-selling by foreign banks. The rupee settled at 53.30/31 to the dollar, 0.4 percent down from Friday's close of 53.08/09, after dipping to 53.34 in early trade. One-month offshore non-deliverable forward contracts were quoted at 53.79 rupees, indicating more weakness was likely in the short term. The Indian rupee should start stronger today, taking cues from firmer Asian stocks and hopes for capital inflows. The likely range for USDINR to trade in spot is 52.95-53.25. 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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