Indian Rupee opens weak at Rs. 59.87 against US$ - ICICI Bank : Treasury Research

The Indian Rupee opened at 59.87 weaker than yesterday's close of 59.66 on the back of sharp overnight gain in the US Dollar and weakness in other Asian currencies. The Rupee is expected to remain under pressure as caution prevails in the global financial markets ahead of key US labour market data releases. Though likely capital inflows related to HUL open offer, which ends tomorrow could support the Rupee, gains are expected to be capped amidst Dollar demand from oil importers. Intraday movements in domestic stocks would be closely watched for further cues. The intraday trend for USDINR is bullish with support at 59.67 and resistance at 59.98.

The Indian Government bonds have opened weaker amidst weak cues from the US Treasury markets as positive US economic releases have further boosted expectations of an early QE tapering by the US Fed. The domestic supply pressures and rise in international crude prices would further add to losses in the gilts. Yesterday, the bonds traded weak, with the rise in yields tracking the losses in the Rupee and US Treasuries. The old 10-year bond yield, currently at 7.69%, is expected to trade in the range of 7.66%-7.72% while the new 10-year benchmark, currently at 7.50%, is expected to trade in the band of 7.47%-7.53%.

Source : Equity Bulls

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