By admin       2016-07-13

MUMBAI, JULY 13: The rupee was trading a tad strong at 67.16 in the late morning deals on increased selling of the US currency by banks and exporters amid positive economic data.The Index of Industrial Production (IIP) grew 1.2 per cent in May as against a contraction of 1.3 per cent in April. It had expanded by 2.5 per cent in May 2015.Meanwhile, retail inflation which is outside the central bank’s comfort zone and at a 22-month high in June remained stable at 5.77 per cent. It was 5.76 per cent in May.Apart from dollar selling, a firm domestic equity market, continued foreign capital inflows and dollar's weakness against other currencies overseas supported the rupee, dealers said.The domestic unit opened strong by 6 paise at 67.12 at the Interbank Foreign Exchange market today. It hovered in a range of 67.16 and 67.11 before quoting at 67.16, up 2 paise at 10.50 a.m., local time.Yesterday, the rupee had ended 5 paise down at 67.18 on fresh dollar demand from banks and importers in spite of a sustained rally in the domestic equity market.Meanwhile, the benchmark BSE Sensex rose 120.62 points, or 0.43 per cent, to 27,928.76 in early trade.rex (US$/INR) The rupee rose over three-week high against the dollar, as gains in regional and local stocks spurred hopes of foreign fund inflows.However, heavy greenback purchases by crude oil importers kept the rupee’s gain in check The dollar index against six major currencies ended at 96.56, up 0.29% from the previous close of 96.28. US$/INR derivatives strategy: Sell July ContractIn the currency futures market, the most traded dollar-rupee July contract on the NSE ended at 67.29. The July contract open interest increased by 3.62% from the previous day August contract open interest was up 23.05% from the previous day We expect the US dollar to meet supply pressure on against the rupee. Utilise upsides in the US$/INR July contract to sell.

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