Monday, 23 January 2012

INR-USD trading outlook january 24 2012

forex trading outlook today - INR-USD trading outlook january 24 2012 : The Indian rupee remained firmer in afternoon trade, supported by dollar inflows that helped to offset choppy local shares. Dollar demand from oil importers limited the rise, traders said.

* At 2:16 p.m. (0846 GMT), the partially convertible rupee was at 50.2325/2450, up from Friday's close of 50.32/33, after moving in a 50.1700 to 50.4050 band.

* India's main stock index was up 0.02 percent in volatile trade, after opening lower.

* An uptick in dollar demand from oil importers to meet month-end payment requirements checked the rupee's gains. Oil is India's largest import item and oil refiners are the largest buyers of dollars in the local market.

* Dealers expect the the rupee to stay in a range in the near-term, after its recent rally, and are awaiting the central bank's policy announcement on Tuesday for further direction.

* The Reserve Bank of India will review its policy on Tuesday and none of the 22 economists polled by Reuters last week expect it to cut rates.

* The rupee strengthened 2.41 percent last week, its biggest weekly rise since the last week of October.

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