The Indian rupee rose to a fresh over one-month peak and opened at 46.11,boosted by stronger regional peers but the local equity market performance would be key for further direction.
In past few sessions, we have noticed a faster pace of appreciation in rupee than before as initial share offering by SKS Microfinance Ltd. and a share sale by Engineers India Ltd. have attracted heavy inflows from foreign funds.
The dollar downside pressure remains on the perception that the U.S. growth outlook is deteriorating and forcing the Federal Reserve to keep interest rates low.
However for next 2-3 days, if INR remains below 46.20-40 region the INR bearish view needs to be reconsidered.
Importer can hold to cover exposure, While exporters can cover near 46.30- 46.40 levels. Neutral.
