Indian Rupee hits all time high of Rs. 62 against US Dollar - ICICI Bank : Treasury Research

The Indian Rupee opened the session marginally stronger against the Dollar, aided by measures announced by the RBI on Wednesday to curb capital outflows. However, the currency came under pressure intraday amidst Dollar purchases by PSU and foreign banks on behalf of clients. Weakness in some of the EM Asian currency pairs also weighed on the Rupee. Intraday, the Rupee touched an all time low of 62 against the US Dollar. However, reported Dollar sales by PSU banks in the latter session of trade on behalf of the RBI helped limit the downside. The USDINR pair ended the session at an all-time closing low of 61.65 vs. 61.43 on Wednesday.

The 6 and 12-month forward premia closed at 9.40% and 8.55% respectively compared to prior close of 9.20% and 8.36%.

The US Dollar edged up against most of its peers amidst rising speculation that the US Fed might begin tapering its monthly bond-buying in September itself. Meanwhile, decline in global equities also aided the safe-haven demand for the US Dollar. The Euro fell slightly amidst broad-based strength in the Dollar. However losses in the Euro were capped as data showed that Eurozone's trade surplus widened to EUR 17.3 bn in June. The British pound continued to trade near its highest levels in two months as recent positive data prints weighed on expectations of further QE by the Bank of England. Intraday, global currency markets will look forward to US economic data for further cues on the US Fed's stance. The Dollar index is currently slightly higher at 81.24 compared to yesterday's close of 81.18. EUR/USD is slightly lower around 1.3341 vs. yesterday's close of 1.3347; GBP/USD is trading around 1.5633 as against yesterday's close of 1.5640. USD/JPY is trading around 97.55 compared to previous close of 97.37.

Source : Equity Bulls

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