The Indian Rupee is likely to extend losses Friday after reports that smoke was visible from the largest European nuclear power plant in Ukraine. On Technical charts Dollar Rupee is trading in up-trend and well placed above its all major moving averages indicating strength for now.
The Indian rupee is expected to depreciate on Friday due to stronger dollar and higher FII fund outflows from domestic markets. Additionally, pessimistic sentiments in global markets may weigh on the domestic currency. “Investors will remain cautious ahead of a series of macroeconomic data from the US. US$INR (March) is likely to head further towards 76.50 for the day,” said ICICI Direct. Rupee declined by 15 paise against the US dollar on Thursday, pressured by surging crude oil prices amid intensifying conflict between Russia and Ukraine. At the interbank foreign exchange market, the local unit opened strong at 75.76 against the greenback but soon entered the negative territory as investors turned towards safe-haven assets. It settled at 75.95 against USD, down 15 paise from the previous close.
Heena Naik- Research Analyst – Currency, Angel One Ltd
“The Indian Rupee is likely to trade slightly in a positive manner in the initial few trading hours on reports that Iran may reach an agreement to revive the nuclear deal. This shall allow Iran to export more oil. Crude prices are expected to move south post this news which may, in turn, benefit the local unit. However, any slight fall in USDINR could prompt the importers and banks to make opportunistic dollar buying as the geopolitical risks in Ukraine still persist.”
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
“Rupee continued to remain under pressure in the past few sessions primarily as the uncertainty between the two nations escalated and the dollar got support after the Fed Chairman’s testimony wherein he hinted to raise rates in the near future. Market participants will be now keeping an eye on the non-farm payrolls number that will be released from the US. Better-than-expected employment number could extend gains for the greenback. We expect the USDINR(Spot) to trade sideways with a positive bias and quote in the range of 75.40 and 76.20.”
Tapish Pandey, Research Analyst, SMC Global Securities
“The Indian Rupee is likely to extend losses Friday after reports that smoke was visible from the largest European nuclear power plant in Ukraine. On Technical charts Dollar Rupee is trading in up-trend and well placed above its all major moving averages indicating strength for now. On higher side USDINR facing immediate resistance of rising channel chart pattern higher band near 76.20-76.22 levels sustain above which may head higher towards near major resistance levels 76.75-76.80 while on lower side support is seen around 75.45-75.49 levels of major moving averages.”
“Considering all major points strong dollar, higher oil, FII’s outflow and the fresh risk-off sentiment indicating further weakness for Rupee, hence we recommend to trade is dollar rupee on Positive bias while Volatility will be remain high so better to buy USDINR on dip and keep stop loss below 74.49 levels ( all near month future levels).”