Thursday, September 1, 2016

Today Rupee opens at 66.85 per dollar; gains 10 paise in market

 
The Indian rupee opened higher by 10 paise at 66.85 per dollar on Friday versus previous close 66.95.The dollar was on the back foot after taking a tumble following a surprise contraction in US manufacturing in August, casting some doubts on the strength of US economic growth ahead of the closely-watched employment data due later in the day. 
 
US DOLLAR INDEX (USD)
US Dollar Index traded lower by 0.4 percent in yesterday’s trading session. Reason behind this slump could be attributed to the weak manufacturing data from the nation that fell to a seven - month low in Aug ’16. Demand for factory orders has declined thereby affecting production activity and raising renewed concern of industrial weakness. Furthermore, investors play safe ahead of the release of NFP job data that is to be release d later in the day today. Labor market is one of the factors which are looked into by the US fed for rate hike decision. Hence, investors are playing safe and refrain from placing any risky bets. The American currency made an intraday low of 95.60 and closed at 95.66 on Thurs day.

OUTLOOK

Rupee is likely to appreciate owing to weakness seen in the IS Dollar Index after the disappointing release of manufacturing data from the nation which will keep the Rupee supportive. Moreover, heavy influx of capital into the domestic markets will further act as a positive factor.

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