Indian Rupee ends the day at Rs. 58.71 agianst US$ - ICICI Bank : Treasury Research

Indian Rupee opened weaker, adding to yesterday's losses tracking overnight rise in crude oil prices and losses in other Asian peers in the early trade today. The Rupee remained under pressure intraday amidst caution in global markets ahead of the FOMC policy review. Dollar demand by oil importers also weighed on the currency. However, the Rupee pared losses in subsequent trade amidst some capital inflows and recovery in the Euro. Gains in domestic stocks also provided support. The Rupee ended the day at 58.71, compared to yesterday's close of 58.78.

The 6 and 12-month forward premia closed at 5.75% and 5.49% respectively as against 5.78% and 5.53% yesterday.

The Dollar is trading flat ahead of the FOMC policy review following losses in yesterday's trade as weak US housing starts data had led to paring of bets of tapering of asset purchases by the Fed. The Euro is trading little changed amidst cautious market sentiment across the globe as all eyes remain on the FOMC meeting. The Pound edged lower as the minutes of the June BoE policy meeting showed that three Central Bank voting members including governor King voted in favour of expanding asset purchases by GBP 25 bn. The Yen is trading firm amidst optimism over Japan's recovery as the May adjusted trade deficit came in lower than expected and exports surged by 10% YoY, the most since 2010. The Dollar index is currently at 80.64, little changed from previous close. EUR/USD is trading around 1.3393, flat near yesterday's closing levels; GBP/USD is trading around 1.5634 as against previous close of 1.5642. USD/JPY is trading around 95.16 compared to previous close of 95.33. (17:30 IST)

Source : Equity Bulls

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