Expect Indian Rupee to trade sideways: Angel

Angel Broking's report on rupee

Dollar/INR

The Indian Rupee depreciated by 0.7 percent owing to month-end dollar demand from importers, mainly oil refiners. Also, appreciation of the US dollar against other currencies overseas acted as a negative factor.

However, sharp losses were cushioned as strong foreign capital inflows into equity market restricted the rupee's fall. The currency touched an intra-day low of 61.97 and closed at 61.79 on Thursday.

For the month of January 2015, FII inflows in equities totaled at Rs.1861.02 crores ($303.05 million) as on 29thJanuary 2015. Year to date basis, net capital inflows stood at Rs.1861.02 crores ($303.05 million) as on 29thJanuary 2015.

Outlook

From the intra-day perspective, Indian Rupee will trade sideways today as consistent FII inflows along with positive domestic equities will be supportive.

While on the other hand, month end dollar demand along with strength in the DX will be negative for the currency.

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