MC:Rupee may trade in 51.02-51.65 range:Karvy Stock Broking
Karvy Stock Broking has come out with its report on currency. As per the research firm, rupee range for the day is seen between 51.02-51.65/$.
Negative global cues and the Fear of P-Notes taxation kept the rupee under pressure on Thursday. The rupee fell by almost one percent. Spot finally settled at 51.39 Markets remained volatile on expiry day and ended the day with losses. The nifty lost almost six percent for the March series. The Nifty finally settled at 5178 The Dollar Index ended lower on Thursday as Euro continued its gains. It closed at 79.04 On Tuesday, FII' were net buyers in Equities to the tune of 249 cr whereas they were sellers to the tune of 2010 cr in the Debt segment The call rate closed higher at 9.30% as demand for short term money remained slightly higher India's 10 year yields closed higher in the last trading session, they finally ended at 8.59% higher by 9 bps In the domestic currency markets the rupee lost against the GBP, EUR and JPY by 0.69, 0.31 and 1.74 percent respectively.
OUTLOOK On the currencies front, the euro gained toward a one-month high against the dollar as European finance ministers prepared to meet today amid prospects they will agree increase rescue funds. The Asian currencies have reacted to this and are trading higher. On the equities front the Asian markets are trading mixed, with Hong Kong being the major loser as earnings declined more than expectation. SGX Nifty is trading almost flat with a minor gain of five points. On the Economic front, from the Euro zone, Retail Sales (MoM) is expected to come in much higher at 1.10%. This could be positive for the Euro in the afternoon session. From the US Personal Income and Personal Spending are to be closely watched, they are expected to continue to come in higher showing the US economy has grown. This could give positive impact to the USD.
For Today, The rupee is likely to open positive today. The gain in Euro ahead of the finance ministers meet in Copenhagen will support the local unit. The gains might be limited by month end demand by importers and domestic OMC before yearend financial closing today. The range for the day is seen between 51.02-51.65/$.
