Rupee may trade in tight range of 63.10-63.50: Nirmal Bang
According to Nirmal Bang, rupee may trade in a tight range of 63.10-63.50 during the day. The prospects of some hints of QE tapering in today‘s FOMC minutes will cap any significant gains in the rupee, says the research firm.
August 21, 2013 / 12:49 IST
Nirmal Bang's report on currency
The Indian rupee fell past 64 to the dollar for the first time on Tuesday and bond yields spiked to a five-year high before the central bank stepped in to support the currency, as Asia's third-largest economy bore the brunt of the global emerging markets selloff.Underscoring how hard it is for New Delhi to push through reforms despite the urgency of a deteriorating economic outlook, parliament was adjourned on Tuesday due to protests by members over a corruption scandal. India's notoriously dysfunctional lower house of parliament was due to debate a bill to allow foreign investment in the fledgling private pension industry.However, India managed to sell $9.3 billion worth of government debt limits to foreign institutional investors, although at rock bottom prices, a sign that they hold out hope of improving market conditions.The rupee may trade in a tight range of 63.10-63.50 during the day. On one hand, rupee may find some support from the successful auction of the government debt limits and revival in equity markets backed by the announcement of OMOs. However, the prospects of some hints of QE tapering in today’s FOMC minutes will cap any significant gains in the rupee.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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