According to Angel Broking, The Indian rupee is expected to depreciate in today‘s trading session owing to surge in DX after the hawkish speech made by the US Fed Chair who commented on stronger labor market and wage growth.
Angel Broking's report on currency
INDIAN RUPEE (USDINR)
The Indian Rupee depreciated by 0.1 percent yesterday owing to persistent buying of the American currency by importers and banks amid higher US Dollar in the overseas market. The prospect of three more rate hikes in the US prompted the traders to park their funds in dollar denominated assets which affected India’s foreign inflows in turn. Moreover, domestic markets i.e. Sensex and Nifty ended in red tracking losses in Asian market equities yesterday as markets discounted the geopolitical worries following attacks in Europe. For the month of December 2016, FII outflows in equities totaled at Rs. 887.16 crores ($129.54 million) as on 20 th Dec’16. Year to date basis, net capital inflows in equities stood at Rs. 27855.31 crores ($4242.27 million) as on 20 th Dec’16.
The Indian rupee is expected to depreciate in today’s trading session owing to surge in DX after the hawkish speech made by the US Fed Chair who commented on stronger labor market and wage growth. This will boost the demand for the US Dollar in turn keeping the rupee pressurized.
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First Published on Dec 21, 2016 10:44 am