Quote on Rupee 29 August 2022 By Ms. Sugandha Sachdeva, Vice President - Commodity & Currency Research, Religare Broking Ltd.
The Indian rupee has slumped to test fresh lows of 80.1250 in today’s session following significant strength seen in the dollar Index towards two-decade highs. The Fed chair Jerome Powell adopted a hawkish stance at the Jackson Hole symposium and indicated a continued tightening path to tackle soaring inflation, which has spurred buying interest in the greenback. Weak economic data from the European region is also supporting the advance in the dollar. Besides, risk-averse sentiments and steep correction in domestic equities have added to the rupee woes. Decoding the other key catalyst, the surge seen in crude oil prices amid expectations that OPEC and allies could cut output to restore market balance is weighing on the rupee-dollar exchange rate. Going forward, market participants shall focus on the key US jobs report as well as the domestic Q1 GDP data to get further cues about the rupee movement. The domestic currency still looks to remain well cushioned at the 81.10 mark and unless we see the rupee breaching the crucial 80.10 mark on a closing basis, it looks primed to reverse course and trade with an appreciation bias.
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