The Indian Rupee is expected to appreciate today on the back of weakness in the dollar. Additionally, positive sentiments in the global markets may also boost the currency. However, expectations of improved macroeconomic data from the US will continue to support the dollar. “US$INR (March) is expected to move towards 75.90 for the day,” said ICICI Direct. The rupee surged to a nearly two-week high against the US dollar in previous session, tracking positive domestic equities and Asian currencies ahead of the US Federal rate hike decision. At the interbank forex market, the local unit opened at 76.40 against the greenback and witnessed an intra-day high of 76.19 and a low of 76.44, before settling at 76.20, up 42 paise over its previous close.
Tapish Pandey, Research Analyst, SMC Global Securities
“The Indian Rupee likely to open flat following mixed dollar trend after the U.S. Federal Reserve hiked interest rates and laid out an aggressive plan for further increases to combat inflation. On domestic front, foreign institutional investors (FII) has witnessed inflow of 311.99 crore in Indian markets after long time which is showing some anticipate for rupee.”
“Dollar rupee has pause its upward rally after knocking record high near 77.33 level and now consolidating in range of 76.21 to 76.85 levels from last few trading sessions which are going to act as immediate support and resistance respectively. However overall trend for USDINR is still bullish as hold above it major moving averages. On down side below range next support is placed around 76.00 breaking down the same may turn to negative while on higher side beyond range next resistance will be near 77 levels.”
Gaurang Somaiya , Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee consolidated in a narrow range ahead of the important FOMC policy statement that was released yesterday. The Federal Reserve raised interest rates for the first time since 2018 and laid out an aggressive plan to push borrowing costs to restrictive levels next year. Dollar fell against its major crosses as the market had largely discounted a 25bps rate hike. Today, the focus will shift to the Bank of England policy statement and hawkish commentary could extend gains for the pound. We expect the USDINR(Spot) to trade sideways and quote in the range of 75.80 and 76.50.”
Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research
“An increase in oil prices weighs on the INR and vice versa, given India’s significant reliance on oil imports and widening trade deficit. The recent outflow of foreign cash has benefited USD/INR purchasers. The Indian rupee is also boosted by an increase in coronavirus infections in India, which rose to 2,876 from 2,568 on a daily basis. Despite the recent recovery, the 10-day moving average and a one-week-old falling trend line, respectively around 76.50 and 76.58, pose a challenge to USD/INR buyers before allowing them to take control.”
