The Indian Rupee is likely to appreciate on Friday amid recovery in Asian currencies, weakness in dollar and rise in risk tolerance in global markets. However, spike in crude oil prices will cap gains. In the previous session, rupee settled at its all-time low at 78.32 against the US dollar at the interbank forex market on the back of a strong greenback and consistent foreign funds outflows offsetting the impact of gains from domestic equities. As long as crude oil prices stay above $95 per barrel, the domestic currency is expected to be vulnerable. At the exchange market, the rupee opened at 78.26 per dollar and the weakening continued till it closed at an all-time low of 78.32 per dollar muted from its previous close.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee fell to fresh all time low as the broader strength in the dollar continued after the Fed Chairman in his testimony sounded hawkish. In another day of testimony the Fed Chairman mentioned that the Federal Reserve’s commitment to reining in 40-year-high inflation is “unconditional”. On the other hand, Euro fell against the US dollar after weaker-than-expected German and French PMI data showed that the euro zone economy is struggling to gain traction. Today, focus will be on the consumer sentiment number that will be released from the US; better-than-expected economic data could continue to extend gains for the currency. We expect the USDINR(Spot) to trade with a positive bias and quote in the range of 77.70 and 78.50.”
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
“USDINR June futures closed 5 paise lower at 78.30, in lackluster trading. The central bank may have been on the offer. Drop-in spot and rise in…