Indian Rupee hits all-time low against US Dollar - ICICI Bank : Treasury Research

The Indian Rupee began the day on a weak note amidst high offshore Dollar demand. Reported triggering of stop losses by banks in the early session further exacerbated losses in the currency. Intraday, the Rupee breached the 68-level mark on the back of persistently heavy month-end Dollar demand by oil importers. Weakness in some of the EM Asian currency pairs also weighed on the Rupee. The USDINR pair ended the session at a fresh all-time high of 68.80 vs. yesterday's close of 66.24. The Rupee posted its biggest one-session loss since 1995.

The 6 and 12-month forward premia closed at 8.29% and 7.30% respectively compared to prior close of 8.34% and 7.45%.

The US Dollar is trading stronger as the risk-off mood persisted amidst escalating concerns of possible US military action against Syria. The Yen is trading marginally weaker, albeit holding on to most of its intraday gains amidst high safe-haven demand for the currency. The Pound meanwhile is trading weaker ahead of BoE governor Carney's speech wherein he's expected to affirm his intention to keep interest rates low. The Euro is also trading weaker against the Dollar. The Dollar index is currently at 81.44 compared to yesterday's close of 81.17. EUR/USD is hovering around 1.3346 vs. yesterday's close of 1.3393; GBP/USD is trading around 1.5458, vs. previous close of 1.5547. USD/JPY is trading around 97.40 compared to previous close of 97.03 (17:15 IST).

Source : Equity Bulls

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