Indian Rupee trades in range - ICICI Bank : Treasury Research

The Indian Rupee traded largely ranged today in the absence of fresh domestic triggers. Rate cut expectations and gains in domestic stocks provided support to the Rupee. However, the upside was capped owing to a weaker Euro and Dollar demand by oil importers. USD/INR ended the day at 54.78, flat around yesterday's close.

The 6 and 12-month forward premia closed at 6.42% and 6.21% respectively as against 6.36% and 6.15% yesterday.

The US Dollar is trading firm amidst speculation of tapering of asset purchases by the Fed following comments by Fed official Lacker and ahead of US economic data that is expected to signal improving growth momentum. Euro fell after data released today confirmed that Eurozone inflation eased to 1.2% YoY in April, the lowest level in 3 years, thereby providing space for further monetary easing. The Yen traded weak today, reversing yesterday's gains amidst expectations of continued aggressive easing by the BoJ and intraday strength in the Dollar. Dollar index is trading around 83.95 as against prior close of 83.83. EUR/USD is trading around 1.2873, lower than previous close of 1.2887; GBP/USD is trading around 1.5224 as against previous close of 1.5234. USD/JPY is trading around 102.55 compared to previous close of 102.25. (17:30 IST)

Source : Equity Bulls

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