Another quiet day in the Indian rupee to US dollar market as the pair was caught in a tight range of 15/16 paise.
In the morning the Indian rupee opened stronger around 62:40/41 to the US dollar, tracking the weakness in the Asian currencies.
Domestic equity market had opened stronger but quickly changed gear and started trading down.
Participation was lackluster as large commercials were absent. Later during the day, a quick rally in Euro and Pound, on the back of better than expected macro data, pushed Indian rupee lower from 62:46 towards 62:28/30 levels against the US dollar.
Tomorrow traders will keep watch on Indian December Goods Trade balance and after Indian rupee closes, US ADP pvt. sector job's data will be crucial.
After November's weak export growth, Indian rupee bulls will be hoping for double digit growth. A lackluster export performance can be negative for Indian rupee.
Outlook: We continue to see the currency trade within 62:00/61:70 and 62:50/75 range over this week.
By Anindya Banerjee, currency analyst, Kotak Securities
NOTE: The views expressed are those of the author