Expect Indian Rupee to trade on a mixed note: Angel

From the intra-day perspective, Indian Rupee is expected to trade on a mixed note on the back of upbeat market sentiments coupled with weakness in the DX will support an upside in the currency, says Angel Broking.

March 11, 2014 / 14:45 IST

Angel Broking's report on curreny

The Indian Rupee appreciated around 0.4 percent in yesterday's trading session and rose to seven month high. The currency appreciated on the back of strong inflow of foreign funds into equities and debt markets. Further, upside movement in domestic market sentiments supported an upside in the currency.

However, sharp upside in the currency was restricted due to strength in the DX coupled with weak Chinese data. The Indian Rupee touched an intra-day high of 60.78 and closed at 60.84 on Monday.

For the month of March 2014, FII inflows totaled at Rs.5747.60 crores ($936.82 million) as on 10th March 2014. Year to date basis, net capital inflows stood at Rs.7866.2 crores ($1290.40 million) as on 10th March 2014.

OutlookFrom the intra-day perspective, we expect Indian Rupee to trade on a mixed note on the back of upbeat market sentiments coupled with weakness in the DX will support an upside in the currency. Further, favorable CAD data of the country in the last week, expectations of fall in retail inflation during the week along with inflow of foreign funds into equities will act as a positive factor. However, sharp upside will be capped or reversal can be seen due to estimates of decline in industrial production and manufacturing output data of the country during the week.