Quote on Year ender currency By Mr. Nish Bhatt, Millwood Kane International
Below is quote on Year ender currency By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
The Indian rupee will end the year on a weaker note against the dollar for another year. Historically, the rupee has depreciated against the dollar in the range of 1-3% YoY, and this year was no different, the INR depreciated almost 2% vs the USD. The rupee traded in the range of 72.263-76.419, the rupee has recovered somewhat from the lowest level witnessed earlier in the month.
One of the major factors for the decline was the eminent liquidity tapering by the US Fed and other central banks. FIIs have pulled out over Rs 30,000 cr from the Indian equity market leading to some nervousness in the key indices as it trades a few percentage points below its all-time high. The concerns of liquidity tapering and rising inflation make it tough for central banks to stay put with Accommodative policy, the scenario will force liquidity tightening & rate hikes by the RBI somewhere in 2022, its effect is already reflected in the performance of the INR.
The performance of INR has been one of the worst among its Asian peers. RBI intervention, inflation trajectory, movement of crude prices, and pace of liquidity unwinding by global central banks will guide the INR in the short to medium term.”
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EURINR trading range for the day is 89.13 - 89.49. - Kedia Advisory