pair opened with a marginal gap down of 10 paise on Tuesday, on the back of
positive comments by the Turkish central bank. Further selling of dollars and
sharper than expected fall in CPI for July provided support to the Indian unit
and took the pair to day’s low of 69.69 during the late trading hours. Rupee
gave up all of its gains and the pair touched a record high of 70.08 due to
buying by foreign banks and corporates. This helped rupee close under 70. The
fall in rupee was mostly due to sharp gains in one-month dollar rupee rates in
the offshore non-deliverable forwards market as pressure on EM currencies
continued. In equity markets, FIIs were net sellers of stocks worth Rs 379 Cr
while DIIs bought stocks worth Rs 391 Cr (provisional). WPI for the month of
July came at 5.09% against median forecast of 5.22%, up from 5.77% in the
sentiments for emerging market currencies improved slightly as Turkey’s central
bank pledged to stabilize the economy. This helped Turkish Lira to recover some
of its losses. Yesterday DXY mostly traded range bound and was supported by
retail sales data coming in stronger at 0.5% vs. median estimate of 0.2%.
Yesterday Turkey also ramped up its tariffs on some U.S imports including cars,
alcohol, rice and cosmetics. DXY index is currently trading just under 96.50
levels. But Chinese Yuan continued to depreciate, touching a high of 6.94.
Equity markets continued the sell off with US and European indices ending in
red yesterday. Asian indices were also trading in red today morning.
opened weaker today morning on account of weak investor appetite for emerging
markets and due to rise in India’s trade deficit in July. It is trading in an
appreciative manner marginally. For the day, we expect the $/INR pair to trade
in the range 70.08-70.40.
remittance to India @ 52.47(19.06) last updation (3.41pm)
(Rates are subject to change
during market hours. Please contact branches for rates for other value dated
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