USDINR opened with 18 pips weaker at 71.74/75 levels against yesterday closed at 71.56/57 levels. Rupee Weakness on dollar index has gained for three consecutive sessions, mainly thanks to a weaker euro, which constitutes around 58 per cent of the index. The Reserve Bank of India and Bank of England is scheduled to meet later on Thursday and is widely expected to keep interest rates unchanged.
TREND INTACT BULLISH TILL HOLD 71.41/42 LEVELS INTRADAY RANGE - 71.30 ( 71.47 - 71.75 ) 71.96
On Wednesday, Interbank Foreign Exchange market, the rupee moved between 71.68 to 71.49 during the session, before finally ending at 71.56, showing a gain of just 1pips . On Tuesday, USDINR had settled 23 pips higher at 71.57. Foreign funds purchased Rs 694.97 crore on a net basis Wednesday, and domestic institutional investors bought Rs 525.26 crore, provisional data showed.
The U.S dollar hit two-week highs against its rivals Wednesday after data showed the U.S. trade deficit narrowed by more-than-expected, while weakness in the euro also lifted sentiment. The trade deficit — which measures the gap between what the United States imports and what it exports — narrowed to $49.3 billion in November, down $55.70 billion the prior month. That was better than economists' expectations of $54.0 billion.
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