Indian rupee was trading at 61:80/81 on spot basis. Indian stock markets closed in the green and Indian Sovereign bonds have also staged a recovery.
US Dollar is on the back foot against the majors, viz., Euro and Yen. A corrective rally in the Asian currencies since morning is also helping the Indian rupee.
News of FIPB clearing the FDI proposal of Tesco and J&J and buyback proposal of Vodafone PLC is also a near term booster for Indian rupee.
Over the near term we expect a tight range of 61:50/60 and 62:20/30 on spot basis.
Anindya Banerjee, Senior Manager, Broking-Currency Derivatives, Kotak Securities
NOTE: The views expressed are those of the author