Indian Rupee trade sideways today: Angel Broking

Accordint to Angel Broking, Indian Rupee will trade sideways today as higher fiscal deficit target in the budget will exert pressure. However, optimism in Asian equities after rate cut from china will be supportive.

March 02, 2015 / 10:31 AM IST

Angel Broking's report on rupee

Dollar/INR

The Indian Rupee appreciated by 0.7 percent last week as selling of the American currency by exporters and banks supported the rupee. Also, ratings agency S&P raised its India gross domestic product growth forecast to 7.9% from 6.2% for the year ending March 2016, citing as well rising investment and low oil prices. The agency also raised its growth forecast for fiscal year 2016-17 to 8.2% from 6.6% previously.

However, sharp gains were capped as investors turned cautious and booked profits ahead of the key events including Economic Survey, Railway Budget and Union Budget along with the expiry of February derivative series due later during the week. The currency touched a weekly high of 61.64 and closed at 61.65 on Friday.

For the month of February 2015, FII inflows in equities totaled at Rs.11475.53 crores ($1852.33 million) as on 27th February 2015. Year to date basis, net capital inflows stood at Rs.24394.5 crores ($3956.51 million) as on 27th February 2015.