Moneycontrol Be a Pro
Get App
Last Updated : Aug 22, 2016 10:21 AM IST | Source: Moneycontrol.com

Rupee is likely to trade sideways: Angel Broking

According to Angel Broking, Rupee is likely to trade sideways as recent weakness seen in the DX will prompt the traders to place fresh bets which in turn will keep the rupee pressurized. However,


Angel Broking's report on Currencies

US DOLLAR INDEX (USD)

The American currency plunged by  - 1.4 percent in the last week.  Reason for the same could be attributed to the dovish stance in  the FOMC meeti ng minutes which prompted the traders to book  profits. Members of the FOMC committee were divided over  when the next rate rise should come. As per federal funds future  rates, only 12 percent traders saw a chance of rate hike in Sep'16  from 24 percent. On t he flip side the New York Fed President  William Dudley spoke about the improving labour market thereby  hinting that the US Federal Reserve might raise rates in its Sep’16  monetary policy review. Traders were so focused on this event that they even ignored  the  robust release of economic data sets from the nation like  industrial production, unemployment claims, and housing starts  data except for the inflation data which came below the  forecasted levels.

OUTLOOK

Rupee is likely to trade sideways as recent weakness seen in the  DX will prompt the traders to place fresh bets which in turn will  keep the rupee pressurized.  However, markets are expected to  cheer the appointment of  Urjit Patel as the  new  RBI  Governor as  he bei ng the existing deputy governor is abreast of the economic  matters in the country and will keep  continuity in policy. 

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 Aug 22, 2016 10:21 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant