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Below is Perspective note on rupee 04 March 2022 By Currency Desk of Emkay Global Financial Services

“The Rupee extended its weekly losses after global markets witnessed a sell-off this morning after Ukraine’s state emergency service reported fire at Zaporizhzhia Nuclear Power plant broke out at a training building after shelling from Russian forces. The White house reported that US President Biden was talking with President Zelenskyy regarding the incident. The recent sanctions on Russia prompted Ratings Agency S&P Global to cut Russia's credit rating deeper into junk territory. S&P downgraded the sovereign rating to "CCC-minus" from "BB-plus" less than a week after dropping it from investment grade. The soaring Crude oil and commodity prices have also hit economies hard since the Russia-Ukraine conflict began. This has now stoked fears that recent high inflation could combine with stagnant economic growth, making it more difficult for the Federal Reserve and other major central banks to manage interest rate. The markets will be keenly watching the US Non-farm payrolls number due to be released later today. We expect the Rupee to see further depreciation towards 76.44 levels if the pair sustains above 76.10. Levels around 75.50 are major support.”

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