Dollar demand may act as a negative factor for rupee: Angel

Angel Broking's report on curreny

The Indian Rupee appreciated around 0.2 percent in yesterday’s trading session. The currency appreciated on the back of inflow of dollars from sale of offshore bonds for second consecutive day. Indian Railway Finance Corp (IRFC) raised about USD 500 million through sale of offshore bonds and attracting a strong order book of over USD 3 billion which supported an upside in the currency. Additionally, inflow of foreign funds in equities which has bought around USD 465 million in last eight trading session acted as a positive factor. Further, marginal rise in domestic market sentiments coupled with selling of dollars by exporters continued with positive movement in the currency. However, sharp upside in the currency was restricted due to dollar demand from oil refiners and its importers. The Indian Rupee touched an intra-day high of 61.845 and closed at 61.97 on Tuesday.

OutlookFrom the intra-day perspective, we expect Indian Rupee to trade on a mixed note on the back of weak market sentiments along with strength in the DX will exert downside pressure on the currency. Further, dollar demand from oil firms and its importers will act as a negative factor. While on the other hand, inflow of foreign funds in equities, selling of dollars by exporters along with inflow of dollars through offshore selling of bonds in last two trades will act as a positive factor.

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