Indian Rupee hits new low - ICICI Bank : Treasury Research

The Indian Rupee opened the day on a weaker note, tracking overnight losses in the Euro and decline in most of the EM Asian currencies. Intraday, the Rupee breached the psychological 60 level mark amidst Dollar demand by corporates and month-end Dollar demand by oil importers. Reports also emerged that several foreign banks' stop-losses were triggered at the 60 level mark, thereby pushing the USDINR cross higher. RBI's reported intervention in the currency market through public sector banks failed to provide much support. USDINR ended the session at a record low of 60.71 compared to yesterday's close of 59.66.

The 6 and 12-month forward premia closed at 5.96% and 5.80% respectively as against 5.93% and 5.64% yesterday.

Euro is trading weaker after ECB President Draghi today, in a testimony to France's National Assembly re-iterated that monetary policy would remain accommodative for the "foreseeable future." The US Dollar is trading firm, extending yesterday's gains after positive economic data released yesterday fuelled speculation that the Fed might taper its asset purchase programme later this year. Yen is trading stronger against the Dollar while the Pound is trading weaker on the back of broad-based Dollar strength. The Dollar index is currently at 82.84, higher than the previous close of 82.58. EUR/USD is trading around 1.3019, compared to yesterday's closing levels of 1.3077; GBP/USD is trading around 1.5351 as against previous close of 1.5422. USD/JPY is trading around 97.76 compared to previous close of 97.81. (17:30 IST)

Source : Equity Bulls

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