Karvy Stock Broking has come out with its report on currency. As per the research firm rupee range for the day is seen between Rs 50.85-51.40.
After remaining weak on Friday, the local unit ignored positive domestic equities as demand for dollars remained high. It went on to hit its lowest level in two months. Spot finally settled at 51.20 Nifty scaled higher as markets saw buying interest based on positive global cues and short covering. The Nifty finally settled at 5278 The Dollar Index continued its gains on Friday. It closed at 79.35 On Friday, FII' were net buyers in Equities to the tune of 1387 cr whereas they were sellers to the tune of 469 cr in the Debt segment The call rate closed lower at 8.70% as demand for short term money remained slightly lower India's 10 year yields closed lower in the last trading session, they finally ended at 8.40% lower by 1 bps In the domestic currency markets the rupee lost against the GBP and EUR by 0.44 and 0.67 percent respectively. Against JPY it gained by 0.21 percent.
OUTLOOK: Asian shares pared early gains on Monday to trade mixed, taking some positive cues from the positive US equities. But there are still fears regarding an economic slowdown which is keeping a lid on the gains. The Euro has still maintained its positive territory and is trading at two week Highs. After having a positive day on Friday the SGX Nifty is seen giving up some of its gains in line with other Asian peers, its trading lower by 24 points. This point to a negative rupee opening. On the Economic front, from the Euro zone, the German IFO Current assessment is expected to come in slightly lower at 117. From the US the Pending Home Sales MoM are to be closely watched, they are expected to decline to 1.00% this could give a slight negative impact to the USD.
For Today, The rupee is likely to remain under some pressure from the higher demand of dollars by importers and local refiners. The negative equities could further hurt the rupee for today's session. Rupee could see some support in the way of strength in the Euro. The range for the day is seen between 50.85-51.40/$.
