Monday, September 26, 2016

Today Indian Rupee rose in the early trade on Tuesday

 
The Indian rupee rose in the early trade on Tuesday. It has opened higher by 7 paise at 66.53 per dollar, which is a 3-week high, against previous close of 66.60.
 
US Dollar Index traded lower by 0.2 percent yesterday as markets remained tensed ahead of the US Presidential debate between Donald Trump and Hillary Clinton. The Presidential debates are very important as half of America's likely voters rely on them to make their likely Presidential choice in the November 8 election. Moreover, markets are still discounting the outcome of Sep’16 FOMC Monetary Policy meet were the key interest rates were left unchanged. New home sales data decreased to 609K in Aug’16 from previous month’s 659K; adding to the jittery sentimen tin spite coming better than the expected levels. All the above factors dented the demand for US Dollar which made an intraday low of 95.02 and closed at 95.21 levels on Monday.

OUTLOOK

Rupee is likely to appreciate owing to weakness in the DX as markets take cues from the US Presidential debate . Moreover , sustained selling of the US Dollar by exporters and banks will further keep the INR positive.
 
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