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Below is Perspective note on rupee 23 February 2022 By Currency Desk of Emkay Global Financial Services

“SPOT USDINR pair continues to witness volatile sessions as tensions between Russia and Ukraine continues to dominate sentiments across global markets. Russian President Vladimir Putin said that Russia recognized the expanded version of two Ukrainian break-away region a move which was condemned by the West. Countries like US, UK and Germany were swift to impose sanctions on Russia post the decision. The US imposed sanctions on Russian financial institution VEB, and their military bank. Biden also said that, "Russia can no longer raise money from the West and cannot trade in its new debt on our markets or European markets. Germany halted the Nord Stream 2 gas pipeline project designed to bring Russian gas to the country and Britain slapped sanctions on five Russian banks and three men close to Putin. Despite the sanctions, Putin said that Russia would not interrupt any of its existing gas supplies. Meanwhile, U.S. Secretary of State Antony Blinken said on Tuesday he had canceled a meeting with Russian Foreign Minister Sergei Lavrov planned for Thursday saying that, "Russian moves are rejection of diplomacy". An escalation of the current situation will trigger a rally in USDINR pair towards 75.25 and targets of 75.72 will open up above this. Until then we expect the market to absorb the news flows in a range between 75.25--74.40.”

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