Rupee to trade positive on aggressive selling of USD: Angel

Angel Broking's report on currency -

The Indian Rupee appreciated around 0.8 percent in yesterday's trading session. The currency appreciated on the back of aggressive selling of dollars from the Reserve Bank of India (RBI). Further, appointment of new RBI governor Raghuram Rajan said that central banks primary role will be stable monetary policy which means low and stable inflation rates. It also raised hopes of new measures to be taken by the governor which supported an upside in the currency. Also, easing of norms by RBI for External Commercial Borrowing (ECB) to allow companies to use overseas loans acted as a positive factor. The currency touched an intra-day high of 66.81 and closed at 67.07 on Wednesday. For the month of September 2013, FII outflows totaled at Rs. 324.6 crores (USD 47.44 million) as on 4th September 2013. Year to date basis, net capital inflows stood at Rs.59845.20 crores (USD 11535.80 million) till 4th September 2013. Outlook: In today's session, we expect rupee to trade on a positive note as a result of aggressive selling of dollars from RBI. Further, election of new Governor has raised hopes of measures to be taken by central bank which will support an upside. However, sharp positive movement will be capped or reversal can be seen on account of weak global market sentiments coupled with strength in the DX. 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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