The Indian rupee is expected to appreciate on Thursday (17 February) due to weakness in dollar.
The Indian rupee is expected to appreciate on Thursday (17 February) due to weakness in dollar. However, expectations of improved jobless claims data from US may support the dollar on lower side. Rising for the second straight day, the rupee appreciated by 23 paise to close at 75.09 against the US dollar on Wednesday as easing of tensions between Russia and Ukraine helped lift risk appetite. At the interbank forex market, the local unit opened at 75.24 against the greenback and witnessed an intra-day high of 74.96 and a low of 75.24. It finally settled at 75.07, a rise of 25 paise over its previous close. According to ICICI Direct, US$INR (February) is expected to correct further towards 74.80 levels for the day.
Heena Naik- Research Analyst – Currency, Angel One Ltd
“In the upcoming session, the Indian Rupee is likely to trade in a range-bound manner with a slight positive bias on the back of opportunistic dollar buying by corporates and banks. The Russian defense ministry shared a video of Russian military equipment and forces leaving Crimea that boosted market sentiments. However, NATO Secretary-General Jens Stoltenberg made a contrasting statement saying that the military organization does not see any sign that Moscow is decreasing its troop levels around Ukraine. So far, the momentum is positive towards Rupee. But any negative news with respect to the geopolitical situation shall affect the currency negatively.”
Gaurang Somaiyaa , Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee traded with high volatility in yesterday’s session after it opened on a flat note but rose sharply in the latter half following broad weakness in the dollar. Uncertainty between Russia and Ukraine has receded and that led to buying in the riskier assets. Market participants remain cautious ahead of the important FOMC meeting minutes that was released yesterday. According to the January meeting minutes Fed officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that decisions would depend on a meeting-by-meeting analysis of data.”
“The Fed in January also released a broad set of guidelines about how it plans to reduce the nearly $9 trillion portfolio of securities held by the central bank. Reaction on the dollar remained muted after the release of meeting minutes as it was in-line with estimates. Today, from the US, Philly Fed manufacturing index and housing number will be important to watch. Better-than-expected data could support the dollar at lower levels. We expect the USDINR(Spot) to trade sideways and quote in the range of 74.80 and 75.25.”
“Rahul Kalantri, VP Commodities, Mehta Equities Ltd
We expect dollar-rupee pair to remain volatile in today’s session and could hold its support level of 74.9500 on a closing basis. Trading is expected in the range of 74.9500-75.4500 in today’s session. Looking at the technical set-up, we expect a pair could show strength only when it starts sustaining above 75.3000 levels.”
Amit Pabari, MD, CR Forex Advisors
“The Indian Rupee is expected to open on a flat note near 74.98 and is likely to trade in the range of 74.80 to 75.20 zone. The local currency was seen extending its gain by 25 paise as the Russia-Ukraine crisis further eased off. The positive sentiment across the market helped Rupee to gain against the USD. Overall, the ongoing correction in the pair is likely to extend further towards 74.80 to 74.50 levels. On the contrary side, 75.30 and 75.70 will be key resistance to watch out for the short term. Hence, one can say that the pair has entered into a consolidation phase of 74.50 to 75.70.”
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