US DOLLAR INDEX (USD) The American currency
US DOLLAR INDEX (USD) The American currency rose by 0.2 percent in yesterday’s trading session as the markets are still discounting the robust release of ADP employment data that came far better than the expected levels in July’16. Amid uncertain global conditions, there has been a decent demand for workers which clearly indicates that the labour market s have finally found some stability. Moreover, the bank of England in yesterday’s monetary policy review cut interest rates and revived a bond - buying program which led to Cable weakness against the DX. All the above factors boosted the demand for the US Dollar Index.
OUTLOOK Rupee is likely to trade positive as disappointing unemployment claims data from the US will likely keep the DX pressurized in turn boosting the demand for the Indian currency. Rajya Sabha has finally passed the GST bill which will lead to FII inflow thereby acting as a positive factor for rupee.
