Indian rupee snapped two-day winning streak on Thursday
The Indian rupee snapped two-day winning streak on Thursday. The currency has opened at 66.47 a dollar, down 11 paise compared with 66.36 per dollar on Wednesday.
The dollar fell to a more than one-week low against the yen after Bank of Japan policymakers are divided ahead of the central bank's next meeting. The Bank of Japan is split on whether to add stimulus at its September 20-21 policy meeting, where central bank governor Haruhiko Kuroda has said the board will conduct a comprehensive assessment of the effects of its massive stimulus programme.
US DOLLAR INDEX (USD)
The trend of US Dollar Index was mostly mixed in yesterday’s trading session as markets still discounted the disappointing release of non - manufacturing and job data from the nation that grew lesser than the forecasted levels in Aug’16. Even average earnings and unemployment data came on a bitter note which has fueled speculation in the economy with respect to the strength of the labor market of the US. All the above factors have raised caution in the market with respect to delay in rate hike timing. In spite of the above negative factors, the DX ended on a positive note. Reason for this strange movement could be attributed to the upcoming meeting of the ECB Governing Council which boosted the demand for safe - haven greenback.
OUTLOOK
Rupee is likely to depreciate as strength in the DX will keep the Indian Rupee a bit pressurized. Moreover, weakness in the Asian market equities will also governed the trend of the Indian markets and its currency.
The dollar fell to a more than one-week low against the yen after Bank of Japan policymakers are divided ahead of the central bank's next meeting. The Bank of Japan is split on whether to add stimulus at its September 20-21 policy meeting, where central bank governor Haruhiko Kuroda has said the board will conduct a comprehensive assessment of the effects of its massive stimulus programme.
US DOLLAR INDEX (USD)
The trend of US Dollar Index was mostly mixed in yesterday’s trading session as markets still discounted the disappointing release of non - manufacturing and job data from the nation that grew lesser than the forecasted levels in Aug’16. Even average earnings and unemployment data came on a bitter note which has fueled speculation in the economy with respect to the strength of the labor market of the US. All the above factors have raised caution in the market with respect to delay in rate hike timing. In spite of the above negative factors, the DX ended on a positive note. Reason for this strange movement could be attributed to the upcoming meeting of the ECB Governing Council which boosted the demand for safe - haven greenback.
OUTLOOK
Rupee is likely to depreciate as strength in the DX will keep the Indian Rupee a bit pressurized. Moreover, weakness in the Asian market equities will also governed the trend of the Indian markets and its currency.
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