Rupee likely to trade in 54.35-54.60 range: Nirmal Bang
Nirmal Bang has come out with its report on currency. According to the research firm, investors will be cautious before the release of India's trade numbers for March. The pair is likely to trade in the range of 54.35-54.60 during the day.
April 10, 2013 / 13:31 IST
Nirmal Bang has come out with its report on currency. According to the research firm, investors will be cautious before the release of India's trade numbers for March. The pair is likely to trade in the range of 54.35-54.60 during the day.
The dollar slipped back from a near four-year high against the yen on Tuesday as traders booked profits on its sharp rally, but the yen's weakening trend remained intact following the Bank of Japan's aggressive monetary easing plan announced last week. Japanese Finance Minister Taro Aso said on Tuesday that the yen was undergoing a correction from previous "excessive" rises, though he stressed the country's monetary policy was aimed at beating deflation, not weakening the yen. Sterling hit a session high against the dollar on Tuesday after better-than-expected UK industrial and manufacturing output data, although gains were tempered by a wider-than-forecast trade deficit. The euro extended gains against the U.S. dollar on Tuesday, hitting its highest level since March 15.The euro hit a session high of USD 1.3100.Rating's agency Moody's warned on Tuesday that prospects of Spain missing its public deficit target this year could result in its sovereign credit rating slipping below investment grade.The Indian rupee weakened marginally on Tuesday as a sharp sell-off in domestic shares raised concerns about foreign investor outflows at a time when the country is looking to narrow a record current account deficit. The partially convertible rupee closed at 54.58/59 per dollar marginally weaker compared with its Monday's close of 54.56/57.Dollar demand from oil companies also hurt the rupee, although that was somewhat offset by selling of the greenback by foreign banks. Foreign investors have now sold a net total of USD 137 million in Indian shares in the four trading sessions to Monday and a net total of USD 710.68 million in domestic debt over the same period, according to regulatory data. The rupee is likely to open stronger tracking the overnight gains in euro. However, we do not see any significant strength in the rupee as importers dollar demand will chip in at the lower levels. Moreover, investors will be cautious before the release of India's trade numbers for March. The pair is likely to trade in the range of 54.35-54.60 during the day.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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