Indian Rupee to trade on negative note - Sushil Finance

The Indian Rupee depreciated by 3.0 percent, touching a record low of 66.3 level in the yesterday's session on the back of month end dollar demand from importers along with the rise in risk aversion in the global markets. Further, concerns over record high current account deficit, worries over inflation figures and higher crude oil prices acted as an undesirable factor for the currency. Additionally, rise in worries over fiscal deficit also acted as a negative factor for the currency. Apart from that, market participants expect US Federal Reserve may start trimming bond buying programme soon, which kept currency under pressure.

We expect Indian Rupee to trade on negative note on the back of weak global market sentiments. Further, month end dollar demand from Importers, concerns over record high current account deficit, worries over inflation figures and higher crude oil prices may act as an undesirable factor for the currency. Additionally, rise in worries over fiscal deficit may also act as a negative factor for the currency. However, sharp fall in the Indian Rupee may be curbed or reversal may be seen if RBI intervenes.

Source : Equity Bulls

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