Indian Rupee ends at Rs. 59.67 against USD - ICICI Bank : Treasury Research

The Indian Rupee opened stronger, mainly on account of dovish comments by the Fed Chairman yesterday. However, intraday, the currency came under pressure on account of heavy Dollar demand by oil importers. Further, reports emerged that banks' stop-losses were triggered at the 59.60-59.70 levels, thereby exacerbating the losses in the Rupee. However, reported Dollar sales by state-owned banks in the later session helped the Rupee recoup some of its losses. Meanwhile, RBI Governor Subbarao commented that global developments have impacted the Rupee and re-iterated that India's current account deficit remained high. The USDINR pair ended the session at 59.67 vs. previous close of 59.66.

The 6 and 12-month forward premia closed at 6.07% and 5.99% respectively compared to prior close of 6.04% and 5.95%.

The US Dollar is trading weaker, holding on to most of the overnight decline, following US Fed Chairman Ben Bernanke's comments that the US economy needed highly accommodative monetary policy "for the foreseeable future". The Japanese Yen is trading stronger after the BoJ today refrained from adding further monetary stimulus. The Pound and Euro are also trading strong on the back of Dollar weakness. The Dollar index is currently at 82.97, compared to the previous close of 84.04. EUR/USD breached the psychological 1.3000 mark in today's trade and is hovering around 1.3064, compared to yesterday's close of 1.2978; GBP/USD is trading around 1.5126 as against previous close of 1.5015. USD/JPY is trading around 99.25 compared to previous close of 99.68 (17:50 IST).

Source : Equity Bulls

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