The Indian Rupee appreciated by 0.1 percent yesterday owing to month end dollar demand from exporters and importers mainly oil refiners amidst lower greenback overseas thereby affecting the rupee value against the dollar.
Domestic markets i.e. Sensex and Nifty ended on a negative note yesterday as investors avoided risky bets amid expiry of futures and options contracts for the month of January. There has been a sharp selloff by FIIs thereby bringing the markets close to a bear hug as the fear of a global deflation is driving away foreign investors.
For the month of January 2016, FII outflows in equities totaled at Rs. 10743.48 crores ($1591.16 million) as on 28th January, 2016. Year to date basis, net capital outflows stood at Rs. 10743.48 crores ($1237.88 million) as on 28th January, 2016.
The currency made an intra-day low of 68.25 and closed at 68.04 on Thursday.
From the intra-day perspective, Rupee is likely to trade positive owing to the weakness seen in the US Dollar Index that will provide support to the currency. However, month end dollar demand from importers and banks will keep the Indian Rupee a bit pressurized.
Euro rose by 0.4 percent yesterday owing to the robust release of Spanish unemployment and German CPI data from the Euro-zone that infused optimism in the market in turn acting as a positive factor for the shared currency.
Also, weakness in the DX after the release of the FOMC statement acted as a positive factor. Hint of optimism in the global markets after renewal in oil prices provided support to the currency.
The currency made an intra-day high of 1.0967 and closed at 1.0937 on Thursday.
Euro is expected to trade sideways as markets remain cautious ahead of important economic data releases from the nation that will keep the currency a bit pressurized. However, weakness in the DX will provide some support to the slag currency.
Sterling Pound traded higher by 0.90 percent yesterday owing to the robust release of GDP data from the nation. The data indicated that UK’s economy had picked up pace at the end of 2015 but GDP growth for the year as a whole was down. Moreover, weakness in the US Dollar Index after the disappointing release of economic data from the US acted as a positive factor for Cable.
In spite of a sizable 33 percent of investment from China last year reports are that yet more money is needed to actually complete the construction of the Hinkley Point C nuclear power plant in the UK. This restricted sharp gains of the currency as sentiments were dented.
The currency made an intra-day low of 1.4407 and closed at 1.4357 on Thursday.
Sterling Pound is expected to trade positive as markets will discount the robust release of Prelim GDP data from the nation. Also, recent weakness in the US Dollar Index will provide further support.
The Japanese Yen depreciated by 0.13 percent yesterday renewal in the crude oil prices spurred risk appetite, thereby reducing the demand for the safe haven Yen. However, weakness in the US Dollar Index cushioned fall.
Moreover, disappointing release of retail sales data from the nation which fell more than expected will keep the policymakers under pressure to do more to revive a fragile economy.
The currency made an intra-day low of 118.99 and closed at 118.81 on Thursday.
Japanese Yen is expected to trade negative as disappointing release of CPI and household spending data from the nation will keep the currency pressurized. However, recent revival in the oil prices along with weakness in the DX will stem the demand for safe-haven Yen.
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