Rupee may trade in 53.25-53.80 range:Karvy Stock Broking

Karvy Stock Broking has come out with its report on currency. As per the research firm, rupee range for the day is seen between 53.25-53.80/USD.

• Rupee recovered its losses on Thursday after the RBI made it compulsory to liquidate 50% of forex earning in EEFC account. The rupee spot ended the day at 53.42
• Following weaker cues Nifty also fell in line with other peers to close in red. It fell by 9 points to close the day at 4965 levels
• The Dollar Index remained flat on Thursday. It finally settled at 80.10 level
• The call rate closed lower at 8.20 % as demand for short-term money remained lower
• India’s 10-year yields ended lower in the last trading session, finally ending at 8.57%, down 1 bps
• In the domestic currency markets, the rupee lost against the GBP, EUR and JPY by 0.62, 1.14, and 0.93 percent, respectively.

Outlook
Asian markets are mostly trading lower, after Chinese inflation failed to boost sentiments. Japanese stocks are gaining slightly after better-than-expected earnings helped investor sentiments. The SGX Nifty is trading lower by 31 points, tracking other peers. These factors point to a negative opening for the rupee.

On the economic front, the German CPI is expected to come in unchanged at 0.10%. From the U.S, the University of Michigan Confidence for May is expected to decline slightly to 76.2 from 76.4 earlier. This is unlikely to have any major effect on the greenback.

The rupee is likely to remain weak, after the euro slipped to three-month lows. Domestic equities could further hurt the rupee. The IIP numbers are expected to show a downtick, with the figures expected to come in at 1.7%. Overall, the rupee is likely to stay on a depreciating note for today. The likely price range for the day is Rs/US$ 53.25-53.80.

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