Dollar closed stronger on Tuesday even as stronger equity markets failed to pull the currency pair in downward direction. Dollar opened the
day at 48.06 levels and closed 11 paisa above at 48.17 levels. Nifty close up by 1% on Tuesday and by 1.54% on Wednesday indicating bulls
are in commanding position in equity markets. However this bullishness did not have its effect on currency markets indicating a temporary
breach of co‐relation between equities and currency market.
Economic indicators showed mixed signals with the Current account balance of India in second quarter showing a deficit of $5.81 billion
against previous surplus of $4.75 billion. However the American GDP data was better than expected with second quarter GDP falling by
0.7% against expectation of fall of 1%. The dollar index fell after this news from 77.32 to 76.73 levels while Dow which fell by 115 points
after this news recovered to close the day at 9712 or 29 points down.
Today the trade data of India will be declared. We expect this to have its effect on the currency pair. We expect USDINR to move between
48.00 and 48.35 for today
No comments:
Post a Comment