The rupee is anticipated to depreciate in the present day amid rising crude oil costs and powerful US greenback. However, buyers will carefully watch US GDP QoQ (Q1) information as it’s anticipated to drop by 1.5%. US$INR is anticipated to surpass the hurdle of 78.06 to proceed its upward pattern in direction of the extent of 78.20, in keeping with ICICIDirect. The native unit fell to a one other lifetime low of 78.87 in opposition to the buck, its second in as many weeks, as unabated FII promoting by abroad buyers and an uncommon surge in demand from importers took the home forex to the brink of 79 within the worst efficiency for the day by an Asian forex. However, sporadic greenback gross sales by the Reserve Bank of India helped include losses.
Dilip Parmar, Research Analyst, HDFC Securities
“Rupee is expected to open slightly lower and head for a worst quarterly decline after March 2020. The risk-averse sentiments, higher crude oil prices, weaker regional currencies, slower growth, higher CAD and foreign fund outflows are the few factors to mention for the rupee depreciation. The sentiment for the rupee remains bearish till we see improvement in domestic macro and foreign fund inflows.”
“Spot USDINR is expected to open higher and crossing 78.85 will pave way for 79.05 while the support has been shifted to 78.40, the recent top resistance. Looking ahead, the start of July can be pivotal for trend followers, and volatility is piling up around upcoming central bank meetings. A sudden policy shift could upset an anticipated seasonal calm in market activity.”
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee continued to remain under pressure and fell to fresh all-time lows following broader strength in the dollar and also as global crude oil prices started to move higher. Dollar rallied against its major crosses after data released earlier this week from the US came in better-than-estimates. Today, focus will be on the final GDP number from the US; expectation is that the economy could contract 1.5% thereby raising more concern over the slowdown of the US economy. At the same time, a few major central bank governors will be coming out with their statement and any hawkish outlook is likely to support the dollar at lower levels. We expect the USDINR(Spot) to trade with a positive bias and quote in the range of 78.70 and 79.20.”
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
“USDINR closed at a fresh all time high at 78.77 on spot, up 43 paise. There seems to be relentless demand from offshore market and also from carry traders looking to unwind their shorts in USDINR. In the morning expiry related buying pushed the pair higher. The move higher has continued even after the closing on spot. Spot reference is now quoting 78.92 in the offshore market. Bias remains upward. Range can be 78.50 and 79.40 on spot.”
Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas
Indian rupee touched an all-time low of 78.79 in opposition to the US Dollar on Tuesday amid weak home equities and surge in crude oil costs. Sustained promoting by overseas buyers additionally put draw back stress on Rupee. FII outflows have been reported at round Rs. 1,278 crores Monday. However, weaker US Dollar Index has cushioned a pointy fall in Rupee. Rupee is anticipated to commerce on a adverse notice on danger aversion in home markets and continued promoting stress from FIIs. Elevated oil costs might also weigh on the home forex. However, US Dollar continues to stay weak amid easing inflation considerations and a rebound in danger belongings. Rupee could commerce within the vary of 78-79.50 in near-term.”
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Source: www.financialexpress.com”