Expect Indian Rupee to trade on mixed note: Angel

From the intra-day perspective, expect Indian Rupee to trade on a mixed note as a result of favorable consumer inflation data from the country in the last week and expectations of optimistic wholesale inflation data today will act as a positive factor, says Angel Broking.

September 15, 2014 / 01:39 PM IST

Angel Broking's report on rupee

On a weekly basis, Indian Rupee depreciated around 0.4 percent. The currency depreciated on the back of weak domestic market sentiments. Further, investors were cautious ahead of the consumer inflation due on Friday and central bank policy review meeting during the end of the month which acted as a negative factor. Also, strength in the DX led to downside movement in the Indian Rupee.

However, sharp downside in the currency was cushioned due to inflow of foreign funds in equities and debt markets. Total inflows stood at $32.60 billion for the current year. The currency touched a weekly low of 61.035 and closed at 60.65 on Friday.

India’s Consumer Price Index (CPI) dropped to 7.8 percent in August as against a rise of 7.96 percent in July. Industrial Production grew at slow pace of 0.5 percent in July from 3.4 percent a month ago. Manufacturing Output slipped by 1 percent in July with respect to rise of 1.8 percent in prior month.

OutlookFrom the intra-day perspective, we expect Indian Rupee to trade on a mixed note as a result of favorable consumer inflation data from the country in the last week and expectations of optimistic wholesale inflation data today will act as a positive factor. While on the other hand, sharp upside in the currency will be capped or reversal can be seen due to weak market sentiments, strength in the DX along with slow increase in industrial production data of the country.