View: Rupee likely to trade in 69.30-68.60 range
In July, FIIs have been net sellers in the equity segment to the tune of $1.1 billion.
By ET CONTRIBUTORS |
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By Gaurang Somaiya
The rupee has remained under pressure due to broad strength in the dollar against its major crosses. FIIs continued to remain net sellers in the equity segment, but were buyers in the debt segment. In July, FIIs have been net sellers in the equity segment to the tune of $1.1 billion and net buyers in the debt segment at $1.36 billion.
India’s forex reserve has also continue to rise. On the domestic front, no major economic data is expected and that could keep the volatility low in the currency. We expect the rupee to trade in the range of 69.30 and 68.60.
The euro consolidated in a broad range of 1.1180 and 1.1280 for the second successive week following lack of cues from the euro zone. In the recent past, euro has been weighed down more by strength in the dollar than by its own economic numbers. Data released from the US were better-than-expected starting from retail sales that rose 0.4 per cent in June compared with growth of 0.1 per cent in the previous month. Market participants will be focusing on the ECB policy statement. Expectations are that the central bank could remain dovish. Preliminary manufacturing and services PMI will also remain in focus and a weaker-than-expected number could keep gains capped for the currency.
The pound remained under pressure on better than expected economic numbers from the UK. This week, volatility for pound could be confined to a narrow range as no major economic data is expected to be released. We expect pound to quote in the range of 1.2420 to 1.2580.
(Gaurang Somaiya is Currency Analyst at Motilal Oswal Securities. Please consult your financial adviser before taking any position in the securities mentioned)
The rupee has remained under pressure due to broad strength in the dollar against its major crosses. FIIs continued to remain net sellers in the equity segment, but were buyers in the debt segment. In July, FIIs have been net sellers in the equity segment to the tune of $1.1 billion and net buyers in the debt segment at $1.36 billion.
India’s forex reserve has also continue to rise. On the domestic front, no major economic data is expected and that could keep the volatility low in the currency. We expect the rupee to trade in the range of 69.30 and 68.60.
The euro consolidated in a broad range of 1.1180 and 1.1280 for the second successive week following lack of cues from the euro zone. In the recent past, euro has been weighed down more by strength in the dollar than by its own economic numbers. Data released from the US were better-than-expected starting from retail sales that rose 0.4 per cent in June compared with growth of 0.1 per cent in the previous month. Market participants will be focusing on the ECB policy statement. Expectations are that the central bank could remain dovish. Preliminary manufacturing and services PMI will also remain in focus and a weaker-than-expected number could keep gains capped for the currency.
The pound remained under pressure on better than expected economic numbers from the UK. This week, volatility for pound could be confined to a narrow range as no major economic data is expected to be released. We expect pound to quote in the range of 1.2420 to 1.2580.
(Gaurang Somaiya is Currency Analyst at Motilal Oswal Securities. Please consult your financial adviser before taking any position in the securities mentioned)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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