Thursday, August 25, 2016

The Indian rupee opened marginally higher at 67.09 per dollar today

The Indian rupee opened marginally higher at 67.09 per dollar on Thursday versus previous close of 67.11.

Rupee is marginally weaker in-line with other EM currencies. We expect the USD-INR pair to trade between 67-67.25/dollar for the day,

US DOLLAR INDEX (USD)
After remaining pressurized for the past 2 - 3 days, the American currency finally surged by 0.3 percent in yesterday’s trading session. Reason for the same could be attributed to the investors focus on the Jackson Hole meeting which is scheduled to start today. Officials of other c entral banks and other senior financial officials will indulge into discussion about the world economy. Moreover, the markets will be looking for hints from Federal Reserve chair Janet Yellen regarding the Fed’s moneta ry plans, particularly the timing of a rate hike. FOMC members are expected to express their views in the days leading to the crucial meeting. All the above factors acted as a positive factor for the currency as demand got a boost. The American currency m ade an intraday high of 94. 87 and closed at 94.75 on Wednesday.
OUTLOOK

Rupee is likely to trade sideways as markets play safe prior to the annual conference meeting in Jackson Hole, Wyoming which will start today. This has kept the Asian markets including India pressurized.
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