INR eases as trade deficit stays elevated

The Indian rupee eased today after recording good gains in last session as stable moves in the US dollar index clubbed with worries over external trade gap weighed on the currency. INR is down 10 paise at 94.58 per US dollar, coming off its best level in five-weeks. Meanwhile, data out yesterday showed that Indias merchandise trade deficit remained elevated at $28.21 billion in May, almost unchanged compared to $28.23 billion in April, as a broad-based surge in imports outweighed a rebound in exports. INR stayed supported yesterday as crude oil prices tanked and the key equity barometers ended with significant gains of around 1% on Monday, mirroring global markets after US-Iran signed peace deal. Overall mood is supposed to be choppy for local currency as the US dollar index is off its one and half week low and quotes up 0.16% at 99.54. On NSE, USD/INR futures are flat at 94.91 after testing lows around 94.60 in early moves.

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