1/5/2024 0 Comments Dollar in rupee![]() ![]() However, RBI with its pile of $600 Bn reserves has done a fabulous job in curbing the volatility and preventing the pair to break past 77.80 levels for over a month. “Moreover, an elevated DXY, inflated crude oil, FII’s outflows, and a rise in bond yields have mounted pressure on the rupee. The risk appetite is setting the market tone ahead of this week’s big events, and is really going to shape expectations for central bank’s policy through the end of the year.” The pair is setting a tone to trade near the upper end of the narrow range of 77.40-77.80 levels taking negative cues from Asian peers amid a rebound in DXY. “After consecutively choppy trading sessions, the USDINR pair seems to have broken the long-held silence and gain some momentum amid an eventful week. Share Market LIVE: Nifty falls 2%, holds 17200 support, Sensex tanks 900 pts on weak global cues RIL falls Amit Pabari, MD, CR Forex Advisors Surging crude prices, foreign fund outflows, broad dollar strength and firm US bonds are among the reasons for weakness in the rupee. ![]() So far this year, the dollar is up over 4.4% against the rupee. The rupee is currently at 77.63 a dollar, after hitting a low of 77.92 last month. While the domestic unit gained initially amid a weak American currency in the overseas market, elevated crude oil prices along with unabated FII outflows and subdued domestic equities capped the appreciation bias. In the previous session, the rupee closed unchanged against the US dollar in muted trade as participants largely stayed on the sidelines ahead of the RBI’s policy decision later this week. sees the local currency at 79 by end June, while Standard Chartered Plc also sees a similar level by the third quarter. Bloomberg Economics predicts the rupee will fall to 81 per dollar by the end of November. Reports from UBS AG, Nomura Holdings and Bloomberg Economics suggest rupee will go down to 79-81 to a dollar over the next few months. The Indian Rupee is expected to depreciate further, and may even fall below 80 mark in near term.
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