Expect Indian Rupee to appreciate today: Sushil Finance

Sushil Finance's report on curency

The Indian Rupee appreciated marginally by 0.05 percent in yesterday’s trading session on the back of RBI measures to curb volatility in Indian Rupee by tightening liquidity. Further, RBI agreed to pay high yield for short term debt, which supported currency. Additionally, Indian Government steps to curb gold imports along with India’s decision to relax the foreign direct investment (FDI) rules in some sectors supported currency to gain strength. Apart from that, weakness in Dollar index acted as a desirable factor for the Indian Rupee. However, demand for dollars from the importers, weak domestic market sentiments along with the rise in worries over FII outflows prevented sharp gains in the Indian Rupee. Outlook: We expect Rupee to appreciate today on the back of weakness in dollar index. Further, RBI measures to curb volatility in Indian Rupee by tightening liquidity, along with Indian Government steps to curb gold imports may support currency to gain strength. However, mixed global market sentiments, demand for dollars from Importers, high crude oil prices along with the rise in worries over FII outflows may prevent sharp appreciation in the Indian Rupee or even reversal may be seen. 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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