INR opens stronger at 71.68 and may trade range of 71.50 to 71.90. On Friday we had two major events – the trade deficit shrink because of sharp fall in imports and Supreme Court almost cleared the decks for ArcelorMittal to invest in Essar steel. The acquisition would result in significant USD inflow in the Indian market.
Today most Asian equities are trading with mild gains and Asian currencies are near flat.
Going ahead we need to be watchful of yield on government bonds and FII data in the Indian market which needs to be robust to support INR