Rohit Vaid Mumbai, November 20, 2018 : .In the coming week, the Indian rupee will be subdued by stock market volatility and hawkish global central bank stand.
Moreover, the poor performance of recently listed IPOs and inflationary worries will hinder any chances of strengthening.
The rupee showed strength last week to reach a peak of 73.95 USD, before losing gains to close at 74.25 US dollars.
Edelweiss Securities Head of Forex and Rates, Sajal Gupta said, “Wobbly stock market and hawkish central bank have made it difficult for the rupee strengthen further.”
In the coming week, expect rupees to trade between 74.910 and 74.980.
Devarsh Vakil (Deputy Head, Retail Research), HDFC Securities stated that the USD/INR pair will trade from 73.7 to 74.30 this week.
We remain convinced that USD/INR will strengthen to 73.5 marks over the coming months.
Vakil also expects that investments in the form FDI or FPi into equity markets, will help to keep the currency strong in the medium-term.
We expect Indian Treasury indices to become part of the global bond indexes in early next year.This will increase flows into India.
Gaurang Somaiya (Forex & Bullion Analyst), Motilal Oswal Financial Services stated that market participants would be keeping an eye on Q2 GDP next week.
The rupee could be supported by a rise in the growth rate.
We believe the dollar will continue to strengthen relative to its major cross and this could impact the rupee.
We expect USD/INR to trade sideways, with a positive bias.The quote will be in the range of 74.9 and 74.7.
Contact Rohit Vaid at [email protected]
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