- Indian rupee defies weakness in Asian and emerging market currencies, but hit by Turkey, ThailandIndian rupee falls below 62 level, down 37 paise to 3-week low vs US dollarBSE Sensex up over 100 points, Infosys near record highIndian rupee edges up to 62.15 against US dollar in late morning trade
Indian rupee has retraced most of the losses it witnessed on Thursday against the US dollar and is currently trading at 61.86/87 levels on spot.
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