Indian rupee retraces losses against US dollar, outlook for next week 61.00/61.50

Posted online: Friday, Dec 27, 2013 at 0000 hrs
Mumbai : 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