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Below is Perspective note on rupee 16 March 2022 By Currency Desk of Emkay Global Financial Services

“The Rupee witnessed a sharp reversal from its recent highs of 77.15 levels over the last week. A slump in Brent crude oil prices from its 14-year highs and possibility of a positive outcome from the ongoing talks between Russia and Ukraine triggered the recent strength in the Rupee. Although Russian aggression continued on the ground, Ukrainian President Volodymyr Zelenskiy said in a video address that the positions of Ukraine and Russia at peace talks were sounding more realistic but cautioned that more time was needed. Along with the geo-political news flow the markets are waiting for the outcome of the US Federal Reserve meeting scheduled tonight. The Fed is expected to raise interest rates by 0.25% for the first time in three years in an effort to combat rising inflation. The markets will also be closely watching the Fed for details on how it plans to end its bond-buying program. We expect the Rupee to see further strength towards 76/75.80 levels until prices fail to break above 77 again.”

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