Rupee may open firm today: Geojit Comtrade

Geojit Comtrade has come out with its report on currency. According to the research firm rupee is expected to open firm today due to firm asian  currencies and global equity markets sentiment.

Asian shares rose today on growing hopes that Europe is taking concrete steps to contain the region's debt woes and head off a systemic banking crisis.Strengthening confidence in the euro zone while receding concerns about the banks problems threatening the financial system has helped euro.Some stability & risk appetite is returning to the markets as seen by the VIX index which has hovered around 30 levels down from the 50 levels seen in August suggested investors are less inclined to seek protection against equity market.

Reuters poll has showed that all four BRIC currencies, the Brazilian real, Russian rouble, Indian rupee and Chinese yuan will recoup at least some of their recent heavy losses over the next 12 months.The latest Reuters BRIC FX survey showed the real, rouble and rupee recovering slowly after diving more than 10 percent against the dollar over the last three months as low borrowing rates in sluggish developed economies force investors to  seek yield in dynamic emerging markets.

Federal Reserve officials who voted last month to twist their holdings of bonds were concerned the economy might not pick up by the end of the year according to the minutes of their two-day meeting in late September. People's Bank of China fixed the yuan's mid-point at 6.3737 today weaker than the previous fixing level of 6.3598.

Indian Rupee opened firm and had meet with some corporate buying of dollars which led the pair to make a intraday low of 49.4750. However firm asian currencies and global equity markets sentiment helped rupee to recoup all of its intraday losses and close firm. Weak dollar movement also aided bullish rupee sentiment. Rupee closed at 48.95 firm then its previous close of 49.3350. It is expected to open firm today due to firm asian  currencies and global equity markets sentiment. Weak dollar movement will also weigh positively on the rupee. Intraday it is expected to trade between 48.80 to 49.20.

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