Rupee is likely to rise in value as the dollar declines

On Friday, the Indian Rupee is anticipated to strengthen versus the US dollar due to the dollar’s decline and the strength of Asian and EM counterparts. Additionally, it is anticipated that the US Fed will weaken its aggressive rate-hiking strategy starting in December, which will boost the rupee.

The dollar index has decreased this week by around 1.7%, reaching a low of 110. The rupee gained 34 paise against the US dollar in the previous session as the dollar dropped from its high points. The local currency at the interbank foreign exchange market started at 82.15 and reached a high of 82.14 before settling at 82.47 versus the US dollar, showing an increase of 34 paise from its previous close.

The Indian Rupee may open Friday with modest gains after some disappointing US economic statistics increased hopes that the Federal Reserve could temper its ambitious plan to hike interest rates starting in December. On Friday morning trade, Asian and EM peers valued and might potentially help the local unit. The Rupee might therefore open between 82.30 and 82.35 against the closing of 82.4900 and could trade in a wide trading range between 82.20 and 82.65 on an intraday basis.

“The rupee slightly increased in yesterday’s first session before beginning to come under pressure. After US statistics came in poorer than anticipated earlier in the week, the dollar reversed earlier gains. New single-family home sales decreased in September, according to data, and the number from the previous month was revised downward. Yesterday’s losses for the dollar were curbed after the US advance GDP figure revealed 2.6% economic growth instead of the expected 2.3%,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

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