The Rupee is expected to appreciate on Wednesday amid dollar weakness and increased risk appetite in global markets. Meanwhile, investors will remain vigilant ahead of US Federal Reserve Chairman Jerome Powell’s speech.
The Indian rupee is expected to appreciate on Wednesday amid dollar weakness and increased risk appetite in global markets. Meanwhile, investors will remain vigilant ahead of US Federal Reserve Chairman Jerome Powell’s speech. “Additionally, capital outflows due to sustained REIT sales will hurt the rupee. Market participants are concerned that support for the European ban on Russian oil will grow inside the bloc, increasing the possibility of crude oil price volatility,” ICICI Direct said. In the previous session, the rupee pared its initial losses to settle at 76.18 against the greenback, following a positive trend in domestic equities. On the interbank exchange, the rupee opened sharply lower at 76.39 against the US currency. However, he recouped all of his losses to close at 76.18.
Heena Naik – Research Analyst – Currency, Angel One
“On March 22, USDINR widened to open at 76.42 from its previous close of 76.11 after US Federal Reserve Chairman Jerome Powell signaled his willingness to raise. rates more aggressively to fight inflation.However, the local unit quickly turned positive due to suspected IPO-related inflows into the system.During the next session, the Indian rupee is expected to continue its positive trend towards the 75.80 levels on expectations of further inflows as well as possible dollar selling by IT companies due to the year-end close.
Anindya Banerjee, Vice President, Currency and Interest Rate Derivatives at Kotak Securities
“The USDINR spot closed 6 paise higher at 76.17, after a volatile session. A sharp rise in oil prices in the morning, coupled with a surge in US yields, pushed the USDINR to target the level of resistance at 76.50 However, selling by exporters and PSUs took the pair back below 76.20 on the spot.When oil prices reversed, equity markets rallied.This added further pressure on the market. “USDINR. In the near term, we expect the USDINR to trade in the range of 75.80 and 76.50.”
Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services
“The Rupee fell during the first half of the session but rose during the second half as global crude oil prices retreated from higher levels. reaction for the Rupee was led by the development of Crude and the Dollar.The weakness of the Rupee was seen in the expectation of higher inflation due to the high cost of energy. Comments from the Fed Chairman boosted the dollar this week as he opened the door to an interest rate hike of more than 25 basis points in upcoming policy meetings to fight inflation. Yesterday most of the gains faded afterwards and a rise in equity markets helped boost risk sentiment.Today market participants will be keeping an eye on the inflation figure to be released by the United Kingdom as well as on the comments of the governments rners of the Fed and the BoE and which is likely to trigger volatility for the main crosses. We expect USDINR (Spot) to trade with a positive bias and range between 75.80 and 76.50.
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