Indian Rupee appreciates by 1% - Sushil Finance

The Indian Rupee appreciated by 1.0 percent in yesterday's trading session on the back of RBI measures to curb volatility in Indian Rupee by tightening liquidity. Further, Indian Government steps to curb gold imports along with India's decision to relax the foreign direct investment (FDI) rules in some sectors supported currency to gain strength. However, demand for dollars from the importers, high crude oil prices, weak domestic market sentiments along with the rise in worries over FII outflows prevented sharp gains in the Indian Rupee.

We expect Rupee to appreciate today on the back of weakness in dollar index. Further, RBI measures to curb volatility in Indian Rupee by tightening liquidity, along with Indian Government steps to curb gold imports may support currency to gain strength. However, weak global market sentiments demand for dollars from Importers, high crude oil prices along with the rise in worries over FII outflows may prevent sharp appreciation in the Indian Rupee or even reversal may be seen.

Source : Equity Bulls

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