Rupee probably to repent amid firm dollar, unceasing foreign funds discharge
The Indian Rupee is likely to belittle more and may fall below 80 marks in near terms.
Additionally, reports from UBS AG, Nomura Holdings and Bloomberg Economics claim that the rupee will fall down to 79-81 per dollar in the next few months.
However, Bloomberg predicts that by the end of November rupees may fall till 81 per dollar.
Whereas Nomura Holdings.Inc and Standard chartered PLC sees the local currency at 79 by June end.
Although the rupee closed unchanged in the previous session against US Dollars as participants hardly interfered ahead of the RBI’s Policy decision later this week.
Moreover, the rupee is currently at 77.63 per dollar after going down to 77.92 per dollar last month. In this year, the dollar is over 4.4% up against rupee.
Gushing crude oil prices, the foreign funds discharges and strong dollar strength and hard US bonds are the reasons for weakening Rupee.
ICICI Direct statements –
“The US dollar edged higher on Monday amid a surge in US treasury yields. US treasury yields extended gains after nonfarm payrolls data showed the economy added 390,000 jobs in May above the market expectations for 325,000.”
“Further, the dollar was supported by a selloff in US stocks. US$INR futures maturing on June 28 ended higher on Monday amid strong dollar and weak domestic indices.”
“The rupee is expected to depreciate today amid strong dollar and unabated foreign funds outflows.”
“However, sharp downside may be prevented on expectations of another interest rate hike by RBI. US$INR futures are likely to trade in the range of 77.75 to 77.90.”
MD, CR Forex Advisors – Amit Pabari’s statement –
“After consecutively choppy trading sessions, the USDINR pair seems to have broken the long-held silence and gained some momentum amid an eventful week.”
“The pair is setting a tone to trade near the upper end of the narrow range of 77.40-77.80 levels taking negative cues from Asian peers amid a rebound in DXY.”
“The risk appetite is setting the market tone ahead of this week’s big events, and is really going to shape expectations for the central bank’s policy through the end of the year.”