The Indian Rupee appreciated by 0.2 percent yesterday on persistent selling of dollars by banks and exporters on a day the Reserve Bank of India (RBI) kept interest rates unchanged. The RBI left repo rate unchanged at 7.75 per cent, but cut SLR or statutory liquidity ratio by 50 bps to 21.50 per cent from 22 per cent.
Also, foreign inflows and hopes of rates cuts in the future continued to support the local currency. Further, recovery in global market sentiments supported gains. The currency touched an intra-day high of 61.55 and closed at 61.59 on Tuesday.
For the month of February 2015, FII outflows in equities totaled at Rs.731.99 crores ($118.28 million) as on 3rd February 2015. Year to date basis, net capital outflows stood at Rs.731.99 crores ($118.28 million) as on 3rd February 2015.
From the intra-day perspective, Rupee will trade on a lower note today as surge in oil prices will be negative for the currency as the same constitutes the major portion of our import bill. Also, correction in DX will exert pressure on the currency.
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