Due to the strong US dollar, high oil costs, and volatility in the financial markets, the Indian rupee is anticipated to open weak. It is anticipated that USDINR(Spot) will trade favorably and quote in the area of 82.50-83.20. In the previous session, despite the foreign dollar weakening, the rupee recovered from its all-time lows to a close 25 paise higher at 82.75 against the US dollar.
Additionally boosting investor confidence was fag-end purchasing in local shares. Analysts and dealers claim that the rupee’s appreciation was nevertheless restrained by rising crude oil prices on the world market. After falling to a record low of 83.29 earlier in the session, the local currency increased following a possible RBI intervention.
In the opening hour of the day, the rupee hit a new all-time low due to continuing pressure. However, losses were limited later in the day as a result of an alleged RBI intervention. The assumption that the Fed might keep raising rates at its next sessions caused the dollar to gain ground against its key counterparts.
Following weeks of upheaval in the financial markets due to her government’s mini-budget, UK Prime Minister Liz Truss announced her resignation, which caused the pound to appreciate versus the US dollar. Today’s focus will be on UK retail sales figures. We anticipate that the USDINR(Spot) will trade favorably and quote between 82.50 and 83.20.”
“USDINR spot reached an all-time high of 83.29, but finished lower at 82.75, down 26 paise, as a result of what was likely a significant amount of RBI intervention. However, the pair should remain well supported due to rising US bond yields and weaker Asian currencies relative to the US dollar. On-site, we anticipate a range between 82.40 and 83.40.” said, Anindya Banerjee, VP, of Currency Derivatives & Interest Rate Derivatives, Kotak Securities
