Rupee Ends Weaker Despite Dollar Correction, Strong Equities
The rupee ended the day on a weaker note despite a correction in the dollar and strong domestic equities. The higher crude oil prices capped the upside in the rupee.
The Indian rupee closed at 83.09 per dollar on Tuesday, down 0.12% from its previous close of 82.97. The dollar index, which measures the value of the dollar against a basket of six major currencies, fell 0.1% to 92.32.
The rupee had been trading stronger in the morning, tracking gains in the dollar index. However, the gains were capped by the rising crude oil prices. Brent crude oil futures rose 0.6% to $74.72 a barrel.
The higher crude oil prices weighed on the rupee as India is a net importer of oil. The country imports about 85% of its oil requirements.
The rupee is also expected to be weighed down by the upcoming inflation data. The Reserve Bank of India (RBI) is scheduled to release the inflation data for August on Wednesday. The inflation is expected to remain above the RBI’s higher limit of 6%.
The RBI is likely to keep the key policy rates unchanged in its next monetary policy review on September 29. However, the central bank may change its stance to hawkish if the inflation continues to remain above its target.
Overall, the rupee is expected to remain under pressure in the near term. However, the weakness in the dollar index may provide some support to the rupee.
- 22 Sep
GBP/USD Expected to Slide Towards 1.22, GBPINR Expected to Move Towards 101.40
GBP/USD and GBP/INR Expected to Weaken The British pound is expected to weaken against the US dollar and the Indian rupee in the near term. The GBP/USD pair is expected to slide towards 1.22 as long as it trades under 1.2350, while the GBP/INR pair is expected to move towards 101.40 as long as it trades below 102.50. This is based on technical analysis, which is a method of forecasting future price movements based on historical price patterns and trends.
- 21 Sep
ICICI Direct’s currency report on USDINR
he rupee appreciated against the US dollar on Wednesday, supported by easing crude oil prices and likely dollar selling by the Reserve Bank of India (RBI). USDINR is expected to rise towards 83.30, as long as it holds above 82.80. The hawkish comments from the US Federal Reserve are likely to support the dollar. USDINR is expected to find support near 83.00 and move towards 83.40. A move above 83.40 would open the doors towards 83.60.
- 13 Sep
Rupee Appreciates Marginally on Tuesday, But Gains Capped by Strong Dollar and Higher Crude Prices
The rupee rose slightly against the dollar on Tuesday, but its gains were limited by a stronger dollar and higher oil prices. The rupee is expected to trade in a narrow range on Tuesday as investors await key economic data from India and the US.
- 12 Sep
Rupee Appreciates 9 Paise on Fresh Foreign Fund Inflows and Expectations of Better Macroeconomic Data
The Indian rupee appreciated 9 paise against the US dollar on Tuesday, amid fresh foreign fund inflows and expectations of better macroeconomic data. The rupee also benefited from the central bank's dollar selling ahead of the inflation data. Meanwhile, the dollar index rose, but the impact of this on the rupee was limited due to the supportive factors mentioned above. Brent crude futures advanced, which could put some upward pressure on the rupee in the coming days. On the domestic equity market front, the BSE Sensex closed higher, while the NSE Nifty declined marginally. FIIs were net buyers in the capital markets on Monday.
- 11 Sep
Rupee expected to appreciate towards 82.80
The Indian rupee is expected to appreciate towards 82.80, as long as it trades below 83.20. The rupee gained on Friday amid likely support from the RBI, but higher crude oil prices and strength in the dollar index restricted it to appreciate below 82.90. Investors will be eyeing this week's key inflation numbers, which may provide more clues for the future interest rate path.