Ultimate magazine theme for WordPress.

Impex Impact: Wider trade deficit to weaken rupee (IANS Currency Forecast) – Mumbai News

Accordingly, the rupee is predicted to vary from 73.80-74.70 to a USD.

Last week, rupee had closed at Rs 74.14 to a USD earlier than hitting a low of 73.70.

“Rising trade deficits of $21.7 billion for December should keep rupee under pressure,” mentioned Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.

“Besides, US Fed’s commentary of rate hikes in 2022 shall also be a dampner for rupee and other EM currencies. Lesser number of IPOs in the coming fortnight can also be a factor for rupee weakness ahead,” Gupta added.

Notably, a fee hike by the US Fed can doubtlessly drive away FIIs from India and different rising markets.

On the trade entrance, deficit widened by 37.92 per cent on a 12 months-on-12 months foundation to $21.68 billion in December 2021 from $15.72 billion within the like interval of 2020.

It had widened to $12.49 billion in December 2019.

“India rupee has become the worst performing currency among Asian basket amidst back of surging trade deficit and inflation,” mentioned Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

“Rupee is having strong support around 73.80 while resistance will be in the range of 74.40 to 74.70,” Vakil added.

According to Gaurang Somaiya, foreign exchange and bullion analyst, Motilal Oswal Financial Services: “At the start of the week, China’s GDP number is scheduled to be released and that could set the tone for the week.

“We anticipate the momentum for the USDINR would proceed to stay optimistic and it might quote within the vary of 73.70 and 74.50.”

Disclaimer: This story is auto-aggregated by a pc program and has not been created or edited by FreshersLIVE.Publisher : IANS-Media

Comments are closed.