Below are Views On The Indian rupee has been gradually inching lower By Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking Ltd

The Indian rupee has been gradually inching lower after witnessing major resistance around 72.40-72.20 area amid the surge seen in the US dollar index. Effective coronavirus vaccines and stimulus measures are working their way to boost economic growth in the US, boosting the appeal of greenback. The street is also pricing in the fact that central banks could start cutting back their support sooner than expected, due to the pick-up in inflation, which is leading to a rise in bond yields. All this doesn’t augur well for the domestic currency while rising crude prices are also acting as a headwind for the domestic currency. Going ahead, we expect the Indian rupee to drift lower towards 73.50 mark in the near term. All eyes would now be on the ECB policy meet and further progress on the US $1.9 trillion stimulus package.

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