On the domestic front, focus will be on the RBI policy statement expectation is that the central bank could continue to raise rates and maintain a hawkish stance. “The relief for sterling may be temporary as the UK still has to deal with macro trends such as high inflation. 14.”Īlso Read: Bulls to stage a comeback or bears to drag Nifty below 16700? 5 things to know before market opening bell The central bank had committed to buying as many long-dated government bonds, know as gilts, as needed between 28th September and Oct. The BoE said it received £2.587 billion worth of offers in its first bond buyback operation aimed at stabilizing the market, and had accepted only £1.025 billion worth. “Rupee fell to fresh all-time lows yesterday but traded in a narrow range as market participants remained jittery following central bank action in the last few sessions and as UK government fiscal plans continued to roil markets. Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. All eyes are now on the RBI monetary policy outcome for further cues.” However, softening crude prices and strong underlying fundamentals of the domestic economy shall underpin the rupee-dollar exchange rate around the 82 to the dollar mark. Limited intervention by the RBI amid declining forex reserves is also leading to the current bout of selling spree witnessed in the Indian rupee. Most of the Asian currencies, including the local unit, are reeling under pressure amid the monetary tightening campaign in the West and concerns about a global economic slowdown. “The greenback has surged around 19.50 percent for the year. Besides, the US central bank raising rates at a faster clip as compared to the other major central banks is propelling the mighty dollar on an upwards incline.” The US Fed has indicated that borrowing costs will keep rising and stay elevated for a long time until inflation looks well under control, which has provided a huge upthrust to the dollar index. “The Indian rupee nose-dived to a fresh record low of 81.95 mark amid the risk-averse mood in the markets, the slide witnessed in the domestic equities, and the advance in the greenback close to the crucial 115 mark, a more than 20-year high. Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking Ltd. USDINR spot price is expected to trade in a range of Rs 81.20 to Rs 83 in next couple of sessions.” Dollar may also take cues from goods trade balance and pending home sales data from the US. RBI is expected to rise interest rates by 50 bps. Investors may remain cautious ahead of RBI’s monetary policy meeting. However, weak tone in crude oil prices may prevent sharp fall in Rupee. Global risk sentiments deteriorated on rising worries over global economic recession and inflation. We expect Rupee to trade on a negative note as risk-off sentiment in global markets. The dollar index rose to a fresh 2-decade high of 114.764 on risk aversion in global markets. 81.9525 on Wednesday on weak domestic equity markets and a strong US Dollar. “Indian rupee depreciated by 0.48% and touched a fresh all-time low of Rs. “It still feels like on a relative basis the rupee has done a lot better,” he said, pointing to the steeper declines in the value of the euro and the British pound against the dollar.Where is share market headed after Nifty settles above 17700, Bank Nifty tops 42250 check support, resistanceĪlso Read: Share Market LIVE: Nifty, Sensex likely to open in green amid positive cues Rupee at new low, nears 82 markĪnuj Choudhary – Research Analyst, Sharekhan by BNP Paribas “A lot of it is dollar strength rather than rupee weakness,” said Rahul Bajoria, the chief economist for India at Barclays. Investors have pulled money out of India and other developing countries and poured it into the United States, where the Federal Reserve is raising interest rates aggressively to tame inflation. Prices of those commodities have climbed after Russia invaded Ukraine.Īnother factor behind the decline of the rupee is uncertainty about the global economy that has, in turn, propelled the dollar to a 20-year high against the currencies of its major trading partners. The rupee has lost about 7 percent of its value against the dollar this year as India has spent more to import sources of energy like crude oil, natural gas and coal. The Indian rupee touched the weakest level on record against the dollar on Tuesday, another victim of higher energy prices and a stronger greenback.
0 Comments
Leave a Reply. |