The Indian Rupee hit an eleven month high and appreciated around 0.4 percent in yesterday’s trading session. The currency appreciated on the back of sustained inflow of dollars into equities which led to upside in the domestic market sentiments.
Further, currency took cues after victory for Bharatiya Janata Party (BJP) in general elections will lead to formation of the new government acted as a positive factor. Selling of dollars by corporate companies and exporters continued with positive movement in the Indian Rupee.
However, sharp upside in the currency was capped due to estimates of dollar buying by the Reserve Bank of India (RBI) and dollar demand from oil importers. The Indian Rupee touched an intra-day high of 58.36 and closed at same levels on Monday.
For the month of May 2014, FII inflows totaled at Rs.13118.70 crores ($2201.15 million) as on 19th May 2014. Year to date basis, net capital inflows stood at Rs.44916.70 crores ($7446.10 million) as on 19th May 2014.
From the intra-day perspective, we expect Indian Rupee to trade on a positive note on the back of victory for BJP with a majority in general election results will lead to formation of new government in a day or two.
Selling of dollars by exporters and corporate companies coupled with sustained inflow of foreign funds will support an upside in the currency.
However, sharp upside in the currency will be capped or reversal can be seen due to dollar demand from oil importers and central bank.
www.punjiniveshonline.com
Further, currency took cues after victory for Bharatiya Janata Party (BJP) in general elections will lead to formation of the new government acted as a positive factor. Selling of dollars by corporate companies and exporters continued with positive movement in the Indian Rupee.
However, sharp upside in the currency was capped due to estimates of dollar buying by the Reserve Bank of India (RBI) and dollar demand from oil importers. The Indian Rupee touched an intra-day high of 58.36 and closed at same levels on Monday.
For the month of May 2014, FII inflows totaled at Rs.13118.70 crores ($2201.15 million) as on 19th May 2014. Year to date basis, net capital inflows stood at Rs.44916.70 crores ($7446.10 million) as on 19th May 2014.
From the intra-day perspective, we expect Indian Rupee to trade on a positive note on the back of victory for BJP with a majority in general election results will lead to formation of new government in a day or two.
Selling of dollars by exporters and corporate companies coupled with sustained inflow of foreign funds will support an upside in the currency.
However, sharp upside in the currency will be capped or reversal can be seen due to dollar demand from oil importers and central bank.
www.punjiniveshonline.com
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