Asian markets are trading higher today ahead of the industrial production data from Chinese economy. However, sharp upside in the markets was capped due to geopolitical tensions between Ukraine and Russia. The US Dollar Index (DX) traded lower by 0.2 percent in yesterday’s trade on the back of mixed market sentiments which led to decline in demand for the low yielding currency. However, sharp downside in the currency was prevented due to geopolitical tensions between Ukraine and Russia which kept markets under the check, thereby increasing the demand for the DX. The currency touched an intra-day low of 79.55 and closed at 79.61 on Wednesday. The Indian Rupee depreciated around 0.5 percent for second consecutive day in yesterday’s trading session. The currency depreciated on the back of geopolitical tensions between Ukraine and Russia. This factor even led to weak market sentiments in earlier part of the trade which exerted downside pressure on the currency. Additionally, concerns of economic growth in world’s second largest economy which is China acted as a negative factor for the Rupee. Also, demand for dollars from state run banks for defense purposes continued with downside movement in the currency. The Indian Rupee touched an intra-day low of 61.29 and closed at 61.22 on Wednesday. India’s consumer price inflation eased more than expected to 25-month low at 8.1 percent in February a rise of 8.79 percent in January. The country’s Industrial production (IIP) data rose unexpected by 0.1 percent in January from decline of 0.6 percent a month ago. Manufacturing Output slipped by 0.7 percent in January with respect to earlier fall of 1.6 percent in prior month.
Posted on: Thu, 13 Mar 2014 07:01:02 +0000
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