Indian Rupee gains sharply to end the day at 63.20 against US Dollar - ICICI Bank : Treasury Research

The Indian Rupee experienced a fairly volatile trading session today. The currency came under pressure in the early minutes of trade itself amidst heavy Dollar demand by importers and continued to hover above the 64.50 levels. However, in the latter session, reported Dollar sales by PSU and foreign banks on behalf of custodian clients helped the currency recoup its losses. The USDINR pair snapped a six-session rising streak to end the session sharply lower at 63.20 vs. yesterday's close of 64.55.

The 6 and 12-month forward premia closed at 8.23% and 7.36% respectively compared to prior close of 8.25% and 7.36%.

The US Dollar is trading stronger amidst continued speculation of early QE tapering, following the release of positive economic data yesterday. The Japanese Yen is trading weaker, extending morning session's losses, ahead of BoJ governor Kuroda's speech at the US Federal Reserve's Jackson Hole conference. The Euro is trading largely flat, after a higher than expected expansion in Germany's Q2 2013 GDP helped cap the downside. The British Pound, meanwhile, had gained intraday after UK's Q2 GDP was revised upward to 0.7% QoQ. However, the Pound pared most of its losses in subsequent trade on the back of some profit booking and is currently trading weaker. The Dollar index is currently at 81.62 compared to yesterday's close of 81.46. EUR/USD is trading at 1.3359, same as yesterday's close; GBP/USD is trading around 1.5554 as against previous close of 1.5588. USD/JPY is trading around 99.06 compared to previous close of 98.72 (17:15 IST).

Source : Equity Bulls

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