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Below is the quote on Rupee 27 January 2022 By Ms. Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking Ltd

The Indian rupee skidded to a four-week low as the greenback has surged to the highest levels of the year and as Brent crude firmed up further towards $90 a barrel, amid geo-political tensions between Russia and Ukraine. The dollar has bumped up against the other major currencies as the US Fed struck a hawkish tone and has given strong indications of a rate lift-off starting March. The Fed has maintained that inflation is running high and job creation has been strong in the US, justifying the need for a fast pace of rate hikes, which has led to fund outflows from the emerging markets and weighed on other Asian currencies in tandem with the Indian rupee. Going forward, we feel that the 75.20 mark will still be a strong cushion area for the domestic currency and as the Fed’s stance is largely on expected lines, the domestic currency may find some buying interest, thereby paving the way for a recovery path. All eyes will now be on the trajectory of crude oil prices and how the situation pans out in Eastern Europe.

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