Indian Rupee opens at Rs. 59.50 agains US$ - ICICI Bank : Treasury Research

The Indian Rupee opened at 59.50 little changed from yesterday's close tracking mixed global cues. Though weakness in the Euro weighed on the Rupee, gains in other Asian peers provided support. Likely capital inflows today, which has seen some pick up in the last two sessions is likely to support the Rupee. However, Dollar demand by importers could cap the upside. Intraday the Rupee would take cues from movements in domestic stocks. The intraday trend for USDINR is ranged with support at 59.15 and resistance at 59.60.

The Indian Government bonds opened firm amidst expectations that the Government is likely announce reform measures going ahead after the recent action of coal regulation and gas pricing. However, the upside is likely to be capped ahead of the fresh supply of debt worth INR 150 bn on Friday. The securities offered for sale include 7.28% 2019, 7.16% 2023, 8.97% 2030 and 8.30% 2042 bonds. The old 10-year bond yield, currently at 7.60%, is expected to trade in the range of 7.57%-7.63% while the new 10-year benchmark, currently at 7.43%, is expected to trade in the band of 7.40%-7.46%.

Source : Equity Bulls

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