US DOLLAR INDEX (USD) - 12.08.2016
The American currency surged by 0.2 percent yesterday owing to the robust release of economic data sets from the nation. Number of Americans filing applications for unemployment benefits fell in the last week. Moreover, year on year import prices are still clawing back from the negative. Markets are still discounting the robust release of ADP and NFP employment data from the nation that came far better than the expected levels in July’16. Amid uncertain global conditions, there has been a decent demand for workers which clearly indicates that the labour markets have finally found some stability. US Dollar Index made an intraday high of 95.91 and closed at 95.84 levels on Thursday.
INDIAN RUPEE (USDINR) The Indian rupee traded on a flat yesterday as robust release of unemployment claims data from the US boosted the demand for American currency n turn keeping the Indian rupee pressurized. Domestic markets i.e. Sensex and Nifty ended on a positive note tracking gains in Asian markets equities.
Markets are still discounting RBI’s Monetary Policy review where the policymakers kept the repo rate unchanged at 6.5 percent. The central bank has also emphasized adequate provision of liquidity and will continue with liquidity operations, FX intervention to enable fcnr(b) redemption without market disruption. RBI says GST tax implementation will improve business sentiment, retains growth forecast at 7.6 pct for 2016-17.
For the month of August 2016, FII inflows in equities totaled at Rs. 4772.39 crores ($714.15 million) as on 11th August, 2016. Year to date basis, net capital outflows stood at Rs. 36550.80 crores ($5494.66 million) as on 11 th August, 2016.
OUTLOOK Rupee is likely to appreciate as higher trading in the Asian market equities will govern the trend of the Indian markets and its currency.
The American currency surged by 0.2 percent yesterday owing to the robust release of economic data sets from the nation. Number of Americans filing applications for unemployment benefits fell in the last week. Moreover, year on year import prices are still clawing back from the negative. Markets are still discounting the robust release of ADP and NFP employment data from the nation that came far better than the expected levels in July’16. Amid uncertain global conditions, there has been a decent demand for workers which clearly indicates that the labour markets have finally found some stability. US Dollar Index made an intraday high of 95.91 and closed at 95.84 levels on Thursday.
INDIAN RUPEE (USDINR) The Indian rupee traded on a flat yesterday as robust release of unemployment claims data from the US boosted the demand for American currency n turn keeping the Indian rupee pressurized. Domestic markets i.e. Sensex and Nifty ended on a positive note tracking gains in Asian markets equities.
Markets are still discounting RBI’s Monetary Policy review where the policymakers kept the repo rate unchanged at 6.5 percent. The central bank has also emphasized adequate provision of liquidity and will continue with liquidity operations, FX intervention to enable fcnr(b) redemption without market disruption. RBI says GST tax implementation will improve business sentiment, retains growth forecast at 7.6 pct for 2016-17.
For the month of August 2016, FII inflows in equities totaled at Rs. 4772.39 crores ($714.15 million) as on 11th August, 2016. Year to date basis, net capital outflows stood at Rs. 36550.80 crores ($5494.66 million) as on 11 th August, 2016.
OUTLOOK Rupee is likely to appreciate as higher trading in the Asian market equities will govern the trend of the Indian markets and its currency.