Indian Rupee appreciates marginally on Tuesday - Sushil Finance

The Indian Rupee appreciated marginally by 0.01 percent in Yesterday's trading session and closed at 61.803. Rise in risk aversion in the global markets, demand for dollar from Importers and strength in dollar Index added downside pressure on the currency. Additionally, US government Shutdown and fear about US Debt default acted as a negative factor for the Indian Rupee. However, foreign fund flows, RBI measures to attract more Inflows and RBI decision to slash MSF rate by 50 bps prevented sharp depreciation in the Indian Rupee.

We expect Indian Rupee to trade on negative note on the back of rise in risk aversion in the global markets coupled with strength in DX. Further, International Monetary Fund (IMF) slashed India's GDP growth which may act as a negative factor for the Indian Rupee. Additionally, demand for dollars from Importers and fear about US Debt default may keep currency under pressure. However, RBI measures to attract more inflows and RBI decision to slash MSF rate by 50 bps may prevent sharp depreciation in the Indian Rupee or even reversal may be seen.

Source : Equity Bulls

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