Angel Broking's report on rupee
The Indian Rupee traded on a flat note and depreciated around 0.2 percent in yesterday’s trading session. The currency depreciated on the back of dollar demand from some banks on behalf of oil importers. Further, investors remained cautious ahead of the US Federal Reserve meeting on Wednesday in which Fed officials are estimated to wind up its QE tapering program and signal cautioned about the timing of any hikes in interest rates that acted as a negative factor.
However, sharp downside in the currency was prevented due to continued inflow of foreign funds in debt markets and upside in domestic market sentiments. The currency touched an intra-day low of 61.36 and closed at 61.28 on Wednesday. For the month of October 2014, FII outflows in equities totaled at Rs.3376.91 crores ($549.78 million) as on 29th October 2014. Year to date basis, net capital inflows stood at Rs.80060.75 crores ($13331.42 million) as on 29th October 2014.
OutlookFrom the intra-day perspective, we expect Indian Rupee to trade on a negative note on the back of weak market sentiments; strength in the DX after US Federal Reserve ends its QE tapering program yesterday along with dollar demand from oil importers. However, hopes for more announcements of reforms by the government coupled with rise in inflow of foreign funds can cushion sharp downside or reversal in the Indian Rupee.
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