Rupee may move in 53.40-53.80 range: Nirmal Bang

Nirmal Bang has come out with its report on rupee. According to the research firm, the rupee is expected to move in a 53.40 to 53.80 range.

Rupee fell the most in over a month on Friday, as it continues to extend its decline for a third consecutive session, as continued weakness in local share and projection of worse than expected slowdown in the economy weighed down the local currency. So far in 2013, the rupee has been the second best performer in Asia driven mainly by foreign fund inflows into Indian stocks which have already crossed $6 billion. Most recently, the Indian government netted $2.15 billion by selling shares in NTPC with more than half the bids coming from foreign investors. But, the country's economic growth remains a concern after a government projection estimated economic growth in the fiscal year will be worse than expected. The euro's weakness also hurt the rupee. The common currency hovered near a two-week low on Friday after the European Central Bank chief hinted at concern about the impact of the currency's recent strength on the economy. USD/INR is expected to open marginally weaker amid lack of clear direction with most other Asian markets closed for the lunar New Year holidays. The pair is seen opening around 53.60 levels and expected to move in a 53.40 to 53.80 range.

The yen rose against the euro and dollar on Friday after Japan's finance minister commented on the currency's swift and sharp move higher recently, raising doubts about whether the next governor of the Bank of Japan will aggressively ease policy. The yen traded at 92.78 yen, down 0.9 percent on Friday. In coming weeks, the yen will likely be influenced by talk about next BoJ governor. A governor in favor of more forceful action should send the yen lower. The euro, meanwhile, continued to be weighed by comments that European Central Bank chief Mario Draghi made on Thursday. Draghi said the exchange rate is important for growth and price stability, which investors perceived as a sign the bank is concerned with the common currency's recent advance and potentially could act to stem its strength. Currency speculators increased their bets against the U.S. dollar in the latest week, according to data from the Commodity Futures Trading Commission released on Friday. The euro last traded at $1.3364, down 0.2 percent on Friday, with the session trough of $1.3352, the lowest since Jan. 25.

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