The Indian rupee is expected to depreciate on Wednesday amid strong dollar and pessimistic global market sentiments. Further, investors fear that new sanctions on Russia will add fuel to rising inflation and hurt economic growth. “The market is carefully watching the Fed to see if it can tighten policy just enough to tame inflation and not damage the economy. Furthermore, market participants will remain vigilant ahead of FOMC meeting minutes,” said ICICI Direct. In the previous session, the local unit climbed 24 paise to close at 75.29 against the US dollar amid persistent foreign fund inflows and weakening of the American currency overseas.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
“USDINR spot closed 22 paise lower at 75.32, lowest levels since Feb28th. Exporter selling and lumpy corporates were major drivers of Rupee appreciation. With oil prices stable, Rupee is seeing some FPI inflows as well. Over this week there are two major events: US FOMC minutes tomorrow night and then on Friday is RBI. We could see volatility increasing during the second half of this week. We expect a range of 75.00 and 75.80 on spot, over the near term.”
Gaurang Somaiya , Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee rose for the second successive session primarily as the dollar retraced against its major crosses but gains remained restricted as global crude oil prices rose on back of expectation that further sanctions could be levied on Russia. Market participants remain cautious ahead of the RBI policy statement that will be released on Friday and at the same time, FOMC meeting minutes will also be important to watch as it could trigger volatility for the dollar. Today, except FOMC meeting minutes, no major economic data is expected to be released from the US. We expect the USDINR(Spot) to trade sideways and quote in the range of 75.20 and 75.80.”
Tapish Pandey, Research Analyst, SMC Global Securities
“Dollar rupee likely to trade firm tracking overnight dollar rally as U.S. Treasury yields hit multi-year highs after hawkish Fed comments. For now, USINR future likely to take support near 75.40 levels. While on higher side, resistance is seen of its short term moving average near 75.86 followed by major resistance of 76.00 psychological levels. Taking into consideration rising yields, strong dollar, volatile crude oil price and mixed chart setup, we are expecting USDINR to trade in a range of 75.40 to 75.86 levels with high volatility, where any dips towards 75.40 mark may be utilised as trading opportunity by keeping stop loss below 75.10 levels.”
(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
