Activity remains thin but in the morning exporter offers capped advance in the US dollar and a 0.6% gains in domestic equity also weighed on US dollar vs Indian rupee rate.
Major currencies like Euro and Pound got a shot in the arm today from a year-end balance sheet adjustment from the European banks. A stronger Euro and Pound had had a positive rub on the Asian and emerging market (EM) currencies, viz., the Indian rupee.
However, the US dollar has not yet seen steep losses as rising US 10-year yields and month-end oil demand is proving support closer to 61.80 levels.
OUTLOOK: Over the next week Indian rupee can continue to trade within the range of 61.00/61.50 on the down and 62.30/62.50 on the up on spot to the US dollar.
By Anindya Banerjee, Kotak Securities