Indian rupee gained 5 paise in a low volume day to close at 62:07 against US dollar on spot. A better than expected economic survey and outlook from Germany triggered a mini rally in the Euro, against the US dollar and that spilled over into rupee as well.
Indian rupee touched an intra day high of 61:92/93 on spot but demand from oilers got it back above 62:00 by closing bell.
FIIs continue to pour money into the Indian equities and that is keeping Indian rupee well supported around 62:40/60 levels. However, we expect a range of 61:50/80 and 62:20/50 over the near term. Keep an eye on global risk appetite as sentiment reversals there can call for a retest of 62:40/60 barrier on USD/INR.
Anindya Banerjee, analyst, Kotak Securities