Re likely to open higher on signs of rise in risk appetite
CNBC-TV18’s Associate Editor-Financial Markets, Latha Venkatesh gives a foresight on how the rupee will trade today.
Rupee is most likely to strengthen today, all Asian currencies strengthened on Friday as well. There is a lot of weakness seen in the yen as well, that is always a sign for the risk appetite rising and that usually results in the equity market, in emerging markets, as well as the currency rising. So, it is a no brainer that the rupee will open higher but how much it would be able to sustain its height to defend firstly on how the equity markets perform today, whether they are able to have a sustained drive. Secondly, it will depend on what kind of import demands comes in and import demand tends to be robust.
Bond market will continue to be in a little range. This month will see lot of bond redemption; therefore there is lot of cash in the market that is why inspite of impending auctions of government majority, there is enough money to pay for all that. Therefore, there will not be any rise seen in this; bond prices will also inch higher.