Indian Rupee plunges - ICICI Bank : Treasury Research

The Indian Rupee opened the session on a weaker note owing to strong offshore Dollar demand. Intraday, the currency remained under pressure amidst persisting month-end Dollar purchases by oil importers. Slight weakness in the Euro also weighed on the currency. The USDINR pair ended the session weaker at 64.30 vs. Friday's close of 63.20.

The 6 and 12-month forward premia closed at 8.41% and 7.52% respectively compared to prior close of 8.23% and 7.36%.

The Dollar index is trading slightly higher, albeit holding on to most of the previous session's losses after positive data from the US tempered speculation of an early QE tapering by the Fed. The Euro is trading slightly weaker. Meanwhile, the Yen and the Pound are trading largely flat in the absence of any fresh triggers. The Dollar index is currently at 81.42 compared to Friday's close of 81.36. EUR/USD is hovering around 1.3375 vs. Friday's close of 1.3383; GBP/USD is trading around 1.5570, flat around previous close. USD/JPY is trading around 98.60 compared to previous close of 98.70 (17:15 IST).

Source : Equity Bulls

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