IGI Logo

Rupee Outlook and Strategy

• US dollar eased on rise in risk appetite in the global markets and as investors remained vigilant ahead of FOMC meeting. However, sharp downside was cushioned on surge in US treasury yields and upbeat economic data from US. Data showed job openings in US increased to a record high in March as worker shortages persisted

• Rupee future maturing on May 27 depreciated by 0.04% amid strong dollar, muted domestic market sentiments and rise in crude oil prices

• Rupee is expected to appreciate today amid risk in risk appetite in the global markets and softening of crude oil prices. meanwhile, sharp appreciation in rupee may be prevented as investors will remain vigilant ahead of US Federal Reserve monetary policy. Fed is likely to raise interest rates by 50bps and announce plans to reduce its $9 trillion balance sheet in its upcoming policy meet. More focus will be on comments about how high interest rates might rise beyond this year to combat stubbornly high inflation. US$INR (May) is expected to trade in a range of 76.45-76.85

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Above views are of the author and not of the website kindly read disclaimer