RBI measures to prevent sharp fall in rupee: Sushil Finance

Sushil Finance's report on currency

The Indian Rupee depreciated by 0.39 percent in yesterday’s trading session and closed at 61.5 on the back of strength in Dollar Index coupled with flat domestic market. Further, rise in worries over country’s economic health and demand for dollars from Importers acted as negative factors for the currency. However, sharp fall in the currency was prevented due to strong fund inflows and RBI measures to prevent sharp depreciation in Indian Rupee.

We expect Indian Rupee to trade on negative note on the back of strength in Dollar Index coupled with mixed global market sentiments. Further, worries over country’s economic health and demand for dollars from Importers may act as negative factors for the currency. Additionally, Investors will be cautious ahead of US Employment data as it would provide the clue, about the timing of trimming of bond buying programme by US Federal Reserve. However, sharp fall in the currency may be prevented or even reversal may be seen due to strong fund inflows and RBI measures to prevent sharp depreciation in Indian Rupee.

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