According to Angel Broking, Rupee is likely to depreciate owing to weak trend seen in the Asian markets after the disappointing release of important economic data sets from India and China.
Angel Broking's report on currencies
US DOLLAR INDEX
The Dollar Index traded higher by 0.5 percent in the last week as markets discounted the statement made by Charles Evans, president of the Chicago Fed. He said that America’s economic fundamentals were solid and growth this year should pick up to around 2.5 percent.However, there are some weak spots in capital spending hence continuation of wait and watch policy with respect to US interest rates would be appropriate.
He also said that a temporary overshoot in inflation so as to lift consumer price growth up to the Fed's longer-term target of 2 percent and raise overall inflation expectations from current low levels is welcome. All the above statements acted as a positive factor for the greenback.
US Dollar Index made a weekly high of 94.85 and closed at 94.59 on Friday.
From the intra-day perspective, Rupee is likely to depreciate owing to weak trend seen in the Asian markets after the disappointing release of important economic data sets from India and China.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on May 16, 2016 09:30 am