Indian Rupee edges higher - ICICI Bank - Treasury Research

The Indian Rupee edged higher in today's tracking gains in the Euro. Gains in domestic stocks further aided the rise in the currency. However, the upside was capped amidst strong Dollar demand by oil importers and defense related payments. USD/INR ended the day at 54.14, as against yesterday's close of 54.18.

The 6 and 12-month forward premia closed at 6.79% and 6.51% respectively as against 6.82% and 6.54% yesterday.

The Euro traded firm as unexpected rise in German factory orders, which increased by 2.2% MoM in March (consensus: 0.5% MoM contraction) aided growth optimism. Meanwhile, the common currency had nudged lower yesterday after ECB President Draghi said the bank is watching economic data and is ready to "act again" if needed. The Pound traded little changed as investors remained on the sidelines ahead of the BoE policy meeting due later in the week. The Dollar is trading lower amidst improvement in global market sentiment. The Yen reversed yesterday's losses as the Japanese Finance Minister said that monetary policy alone will not be enough to support growth and has to be complemented with fiscal measures. Dollar index is trading around 82.07 as against prior close of 82.31. EUR/USD is trading around 1.3125, higher than previous close of 1.3076; GBP/USD is trading around 1.5536 as against previous close of 1.5539. USD/JPY is trading around 99.20 compared to previous close of 99.39. (17:30 IST)

Source : Equity Bulls

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