Currency Squeeze: Indian rupee expected to weaken further
The possibility of IPO money outflow to foreign venture capitalists will impact rupee’s position via-a-vis the US dollar
High imported commodity prices is expected to weaken the Indian rupee against the US dollar during the trade week ahead, experts opined.
Besides, the possibility of IPO money outflow to foreign venture capitalists will impact rupee’s position via-a-vis the US dollar.
Last week, rupee consolidated in a narrow range and has been having a muted reaction despite various data releases.
“Indian rupee is expected to weaken against the US dollar in the coming week due to higher crude prices and a possible outflow of IPO money going back to foreign venture capitalists,” said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.
The rupee closed at Rs 74.5650 per USD on last Friday.
“The safe-haven bets for dollar are still intact and after Powell’s testimony FX traders aren’t convinced over the insistence of dovish outlook,” Rahul Gupta, head Of Research- Currency, Emkay Global Financial Services.
“Better than expected US retail sales data will appreciate the USDINR spot, rising bets for earlier than expected Fed Rate hike or tapering.”
Experts predict a range of USD-INR(Spot) is expected to trade with a positive bias and quote in the range of 74.20 and 75.20.
“Next week, in the first half of the week we expect the momentum to remain relatively low as market participants remain cautious ahead of the ECB policy statement,” said Gaurang Somaiya , Forex & Bullion Analyst, Motilal Oswal Financial Services.
“Expectation is that the central bank could continue to remain dovish thereby keeping gains capped for the EUR-USD pair.”
However, Devarsh Vakil- Deputy Head of Retail Research at HDFC Securities said: “The near-term outlook for the rupee remains bullish however central bank is likely to absorb the inflows and that would limit the upside in the near term.”
“We expect rupee to trade in a range of 74.30-74.80 in the near term.” — IANS
No proposal under consideration of the Federal Government to... READ MORE
Board members discussed plans and announced their commitment to... READ MORE
Xpressions Style boasts a vast collection of perfumes and cosmetics READ MORE
The CEO arranged chartered flights for expatriates to return to the UAE at a lower rate than the Indian government-sponsored Vande Bharat...
UAE's campaign will begin on July 25 when Saif bin Futtais takes part ... READ MORE
The world’s biggest cargo plane and mammoth-sized trailer... READ MORE
The ceremony is taking place before just a few hundred officials and... READ MORE
Emirates urges customers to check travel updates. READ MORE