Below is the Views On This week the fall in dollar index and positive stock indices by Mr. Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services
"This week the fall in dollar index and positive stock indices has put a lot of pressure on USDINR spot. But active participation by RBI is keeping spot in a very tight range of 74.50-75. RBI intervention has not led spot fall to 74.50, the central bank is seen killing all the volatility and speculation. The market focus is on tonight's Fed minutes, we do not expect Fed to indicate any new monetary stimulus initiatives in the minutes, but the market's attention would be on any change to Fed's approach to inflation that could be negative for the dollar. Thus, the dollar's fall boosting the rupee will continue to play and USDINR will trade within 74.50-75.20."
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