Thursday, July 28, 2016

Today Rupee opens flat at 67.04 per dollar at Currency market

 
The Indian rupee opened flat at 67.04 per dollar on Friday against previous close 67.04.The yen gained amid jittery trade ahead of today's much-anticipated policy review from the Bank Of Japan.

US DOLLAR INDEX (USD)

The American currency plunged by 0.3 percent in yes terday’s trading session as markets discounted the recent FOMC monetary policy review. The Federal Reserve made a comment that the labour market was finally getting back on track and near term risks to the American economy had started to fade. However, the inflation rate still lingered under the 2 percent target which prompted the US policymakers to keep the interest rates on hold. There was no major volatility in the DX since markets were not expecting a rate hike this time but wanted clues as to when the Feds would go for a rate hike in times of uncertainty like the post - Brexit effects and the upcoming US Presidential elections. The American currency made an intraday low of 96.25 and closed at 96.72.

OUTLOOK

Rupee is likely to trade negative as markets indulge in speculation prior to the BoJ monetary Policy review that is to be held anytime during the day. Markets expect aggressive easing by the BoJ so as to boost the Japanese economy. this will keep the Indian Rupee pressurized.
 
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