Indian Rupee ends the session stronger - ICICI Bank : Treasury Research

The Indian Rupee opened on a strong note aided by weakness in the greenback. Intraday, however, the currency came under some pressure on account of reported Dollar demand by state-owned banks on behalf of a PSU power company and demand from oil importers. Broad-based weakness in the greenback though helped limit the downside. The USDINR pair ended the session slightly stronger at 59.04 compared to yesterday's close of 59.11.

The 6 and 12-month forward premia closed at 8.96% and 8.04% respectively compared to prior close of 9.05% and 8.20%.

The US Dollar is trading weak, extending morning session's losses, following a WSJ report released yesterday that predicted a continuation of the Fed's monetary easing stance going ahead. The Yen is trading strong after Japanese consumer prices rose the most since 2008, thereby weighing on expectations of further monetary easing by the BoJ to tackle deflation. The Pound is also trading higher while the Euro is trading largely flat. In other news, the Euro Working Group of finance officials approved the disbursement of a EUR 2.5 bn aid tranche for Greece. The Dollar index is currently at 81.68, compared to the previous close of 81.97. EUR/USD is hovering around 1.3272 compared to yesterday's close of 1.3277; GBP/USD is trading around 1.5408 as against previous close of 1.5390. USD/JPY is trading around 98.58 compared to previous close of 99.29 (17:00 IST).

Source : Equity Bulls

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