Indian rupee may correct to 56.42: Emkay
Emkay Commotrade has come out with its report on currency. According to the research firm, spot USDINR is likely to witness some corrective declines if prices failed to breach above 56.80 levels, towards 56.42 followed by 56.20 levels.
June 04, 2013 / 11:25 IST
Emkay's research report on currency
USD-INR
Poor Manufacturing PMI pressurizes Indian Rupee:The partially convertible rupee closed at 56.76/77 per dollar, after hitting a low of 56.8250. HSBC showed Indian Manufacturing PMI at 50.1 compared to 51.0 previous, just above the line dividing economic contraction and expansion.Weaker equity markets and growth concern due to recent GDP numbers also pressurized Indian rupee. Rupee gained some support due to positive manufacturing numbers coming from Eurozone. Indian Rupee is expected to go stronger today after 5 days of continued bull run, as US manufacturing PMI which came at 49.0 indicated that US economy is still in contraction and Fed will not stop its bond buying due to this weakening dollar internationally.In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 56.99 with a total traded volume of USD 4.5 billion.OUTLOOK FOR THE DAYSpot USDINR is likely to witness some corrective declines if prices failed to breach above 56.80 levels, towards 56.42 followed by 56.20 levels. Any break and close above 56.80 can attract potential buying.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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