September 15, 2022
  • September 15, 2022
  • Home
  • Forex Rates
  • High Oil Prices Will Keep The Rupee On A Slippery Slope (IANS Currency Forecast)

High Oil Prices Will Keep The Rupee On A Slippery Slope (IANS Currency Forecast)

By on April 10, 2022 0

Lately the price has remained high due to the Russian-Ukrainian war.

The price has been hovering between $100 and $110 over the past few weeks.

“The rupiah came under pressure due to rising US bond yields, inflation and high prices,” said Sajal Gupta Head Fx & Rates Edelweiss.

“These circumstances are going to be difficult for the Indian Rupee to appreciate. Expect the Rupee to trade between 75.50 and 76.25 next week.”

Last week, the rupiah closed at 75.90 against the greenback.

“Next week is a relatively shorter week, but market participants will keep an eye on inflation and the industrial production figure to gauge a view on the currency,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal. Oswal (NS:) Financial Services.

“Inflation is expected to remain elevated following the recent rise in energy and food prices. On the other hand, industrial production could grow at a slower pace in January and could weigh more on currency.”

The Central Statistics Office (CSO) is expected to release the Industrial Production Index (IPI) and Consumer Price Index (CPI) macro data points on March 12.

On the other hand, expectations for India Inc’s strong earnings season in Q4FY22 should attract new foreign equity-focused funds, which could mitigate any marked weakness in the Indian Rupee against the US Dollar.

“The dollar index surged last week and is now trading near the crucial psychological 100 mark,” said Devarsh Vakil, deputy director of retail research, HDFC (NS:) Securities.

“The Rupee is expected to consolidate next week on improving sentiment for the stock markets. In the near term, the spot is expected to trade in a range of 76.20-75.70 with a bias in favor of the appreciation.”

(Rohit Vaid can be contacted at [email protected])