Indian Rupee ends at record low of Rs. 58.78 - ICICI Bank : Treasury Research

Indian Rupee opened weaker, surpassing the 58 level tracking losses in other Asian peers amidst cautious global market sentiment. Losses in domestic stocks coupled with Dollar demand by oil importers further weighed on the currency. The Rupee came under further pressure amidst reports of defence related outflows and offshore Dollar demand by corporates. The Rupee ended the day at a record low of 58.78, compared to yesterday's close of 57.87.

The 6 and 12-month forward premia closed at 5.78% and 5.53% respectively as against 5.76% and 5.51% yesterday.

The Dollar is trading little changed, with a bullish bias ahead of the FOMC policy review that concludes tomorrow. The Euro is trading marginally higher as the ZEW survey index for economic sentiment rose to 30.6 in June from prior 27.6, signalling increasing optimism over economic recovery. Meanwhile, ECB President Draghi said the Central Bank is considering further non conventional monetary policy tools and would use them if the need be. The Pound traded weak amidst caution across the globe. Meanwhile, UK's CPI inflation rose more than expected to 2.7% YoY in May from prior 2.4% YoY. The Yen is trading lower as sharp downward revision in Japan's April industrial production print to -3.4% YoY from prior -2.3% YoY added to growth concerns. Dollar index is trading at 80.79 unchanged from yesterday's close. EUR/USD is trading around 1.3375, marginally higher than previous close of 1.3367; GBP/USD is trading around 1.5616 as against previous close of 1.5721. USD/JPY is trading around 95.31 compared to previous close of 94.51. (17:30 IST)

Source : Equity Bulls

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