NEW DELHI 12 Dec,2014 The Indian Rupee traded on a negative note to nine month low and depreciated around 0.6 percent in yesterday’s trading session. The currency depreciated on the back of dollar demand from the oil companies. Further, weak domestic market sentiments exerted downside pressure on the currency. Additionally, investors remaining cautious ahead of the retail inflation and industrial production data from the country on Friday acted as a negative factor. However, sharp downside in the currency was cushioned due to central bank selling dollars to prevent sharp fall in the Indian Rupee. The currency touched an intra-day low of 62.47 and closed at same levels on Thursday. For the month of December 2014, FII inflows in equities totaled at Rs.8882.72 crores ($1434.01 million) as on 11th December 2014. Year to date basis, net capital inflows stood at Rs.104902.16 crores ($17358.60 million) as on 11th December 2014.

From the intra-day perspective, we expect Indian Rupee to trade on a mixed note on the back of upbeat market sentiments along with central bank selling dollars will support an upside in the currency. Further, inflow of foreign funds in equities and debt markets will act as a positive factor. While on the other hand, investors remaining cautious ahead of the retail inflation and industrial production data from the country today will cap sharp upside or reversal in the Indian Rupee.