- In 2013, Indian rupee sees third annual loss, US Fed taper, elections key in 2014Indian rupee up 11 paise to 61.80 vs US dollar in 2013's last session, logs 11 pct lossIndian rupee drops 16 paise against US dollarIndian rupee down 10 paise to 61.90 against US dollar in lukewarm deals
Indian rupee continues to trade within a very narrow range of 25/40 paise against the US dollar. Over the last few days the pair has been oscillating between 61:70 and 62:30 levels.
In macro news, core sector growth for the month of November has slowed and fiscal deficit has come in higher than expected. Fiscal deficit for current FY has already touched 94% of the budgeted number, with 4 more months to be accounted for.
Going forward market will focus not just on whether govt manages to stick to 4.8% GFD or not but also on the quality and sustainability of the expenditure compression.
Over the remainder of the week, economic docket will slowly become heavy especially from US and European economies.
Volatility has collapsed in Indian rupee, US dollar trade to around 0.4-0.8% per day, close to levels seen during the Q1 of 2013.
Anindya Banerjee, Senior Manager, Broking-Currency Derivatives, Kotak Securities
NOTE: The views expressed are those of the author