IGI Logo

Rupee Outlook and Strategy

* The US dollar rallied by 0.53% yesterday as US FOMC meeting minutes showed policymakers recognised the possibility that an even more restrictive stance (high enough to slow growth) could be appropriate if elevated inflation pressures were to persist. Additionally, upbeat economic data from the country supported dollar

* Rupee future maturing on July 27 appreciated by 0.36% yesterday on easing crude oil prices and rise in risk appetite in domestic market

* The rupee is expected to depreciate further today amid strong dollar. Furthermore, market participants fear elevated inflation has pushed major central banks across globe to tighten monetary policy, prompting foreign investors to pump out liquidity from emerging markets. US FOMC meeting minutes showed policymakers are of the view that they would have to raise interest rates faster and to levels high enough to slow economic growth because of worsening inflation. US$INR (July) is expected to trade in a range of 79.00-79.45

Dollar Index Vs US$INR

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

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