Expect Indian rupee to trade on mixed note: Sushil Finance

Sushil Finance's report on currency

The Indian Rupee appreciated by 1.13 percent in the yesterday's trading session on the back of weakness in dollar Index coupled with rise in risk appetite in the global markets. Further, dollar selling by state run banks supported currency to gain strength. Additionally, RBI announced some measures to support the embattled rupee. However, concerns over country' economic health, rise in worries over FII's outflow along with the S & P rating warning to the country prevented further appreciation in the Indian Rupee.

Outlook: We expect Indian Rupee to trade on mixed note on the back of mixed global market sentiments coupled with strength in DX. RBI measures to curb volatility in FX and selling of dollars from state run banks may support currency to gain strength. However, concerns over country' economic health, rise in worries over FII's outflow along with the S & P rating warning to the country may curb sharp gains in the currency. Apart from that, expectation among the market participants that the US Federal reserve may start reducing bond buying programme soon may keep Indian Rupee under pressure, or even reversal may be seen.

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