Tuesday, June 21, 2016

Today Rupee declines further, opens at 67.59 per dollar at Currency Market


The Rupee is expected to trade sideways in a range of 67.20-67.80/dollar considering mixed cues from global equity markets,

The Indian rupee declined in the early trade on Wednesday. It has opened lower by 10 paise at 67.59 per dollar against previous close of 67.49.

"The rupee is expected to trade sideways in a range of 67.20-67.80/dollar considering mixed cues from global equity markets, the dollar index and nervousness ahead of the EU referendum."

The dollar edged after news that a new poll on Britain's referendum on european union membership showed growing support for the leave camp, pushing down the euro and sterling.
Meanwhile the euro dropped the most in a week after European Central Bank President Mario Draghi reiterated his willingness to act to bolster inflation.

US DOLLAR INDEX (USD)

The American currency traded higher by 0. 4 percent yesterday as looming concern over EU Referendum that is to be held tomorrow has prompted the traders to place bets in safe - haven assets. Due to this, the US Dollar rose versus its peers. In yesterday’s testimo ny US Fed Chairwoman cautioned the markets that a possible Brexit could leave the Euro - zone’s economy in trotters. However, new polls showed support for the “stay” camp growing. All of the above factors acted as a positive factor for the American currency. US Dollar Index made an intraday high of 94.20 and closed at 94.06 on Tuesday.

OUTLOOK

From the intra - day perspective, Rupee is likely to trade sideways to lower as upcoming EU referendum will boost the demand for safe - haven DX. This will act as a negative factor for the Rupee.

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