Rupee would take cues from IIP and Inflation Data - Aditya Birla Money

The US Non-Farm data announced on Friday indicated that the US companies added 236,000 jobs in February, higher than market estimates of 162,000. But, the previous figure was revised lower to 119,000 as against previously reported 157,000, the Bureau of Labor Statistics reported. The unemployment rate also edged low er to 7.7% in the last month from 7.9% in the earlier month, defying market expectations of the rate remaining unchanged.

The US markets rallied further on Friday with the Dow Jones touching fresh record highs. But, the US Dollar Index gained on Friday as the other major currencies, including the Euro, British Pound and the Yen fell sharply against the greenback.

The Rupee would take cues from the IIP and the Inf lation data this week. Both these data would provide some cues over the RBI action in the upcoming monetary policy. Weak IIP numbers may create hopes of another rate cut.

On an intra-day basis as well, the Rupee may witness some buying, but sharp gains could be curtailed on weaker Euro.

Source : Equity Bulls

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