| Date: |
09-12-2014 |
| Subject: |
Indian rupee opens lower at 61.88 per dollar |
|
The Indian rupee opened marginally lower at 61.88 per dollar on Tuesday against previous day close of 61.83.
The yen held onto sizable gains, having staged a broad short-covering rally as a big drop in oil prices hit global risk appetite.
Ashutosh Raina of HDFC Bank said, "The stupendous US jobs number last week has reinforced fears of the US Federal Reserve hiking rates in mid 2015, the result being dollar gaining against most of the major and EM currencies."
"The USD-INR pair continues to hover around Rs 62/dollar. The second quarter trade deficit has come in at USD 10 billion, which is expected to come down in the third quarter on the back of lower oil prices," he added.
According to Karvy currency report, Asian currencies are trading on a mixed to negative note with respect to the dollar. US dollar depreciated against all the major currencies after the slump in the equity market yesterday. Japanese Yen is trading higher at 120.78, Euro at 1.2310 above the 1.2300 mark, and Pound at 1.5640 with respect to the US dollar.
One month Rupee NDF is trading at 62.20 with no change from yesterday's close indicating a flat opening for the Indian rupee. We expect rupee to open on a flat to negative note and to depreciate marginally in today's session.
Important Economic data is to be released today: trade data from Germany, and industrial production data from the UK. Any negative surprises in these data points could lead depreciation of their respective currencies.
In a nutshell, we expect the USDINR pair to open on a flat to negative note and trading to be biased towards depreciation.
Source : moneycontrol.com
|