Rising global crude oil prices along with FIIs fund outflow from the equity market will further weaken the Indian rupee during the upcoming week.
Accordingly, the rupee is expected to trade with a weak bias upto 75 to a USD in the coming week. \u201cRising crude and trade deficit has been keeping the currency under pressure and even FPI outflows have been a constant pressure on the rupee\u2026,\u201d said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities. \u201cIt may lose further ground owing to oncoming US Fed meeting and current equity outflows.\u201d
Notably, a rate hike by the US Federal Reserve can potentially drive away more FII money from India and other emerging markets.
\u201cOmicron normalisation would also lead to demand revival and thus more imports and more pressure on the rupee\u2026 Crude oil prices around $90 to a barrel is a warning bell for commodity price rise in the time to come,\u201d Gupta said.
Last week, the rupee closed at 74.41 to a USD after weakening to 74.75.
\u201cIn the coming days, the price action of USDINR will be determined by Crude oil prices, FOMC Meeting outcome, risk sentiments, and dollar inflows,\u201d said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities. \u201cSpot USDINR is expected to oscillate between 74.10 to 74.8 for the next week.\u201d
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, said: \u201cThis week, market participants will be primarily keeping an eye on the Fed policy meeting as the central bank is likely to provide clarity and details on the end of quantitative easing, possibly in March.
\u201cApart from the policy statement, preliminary manufacturing and services PMI, advance GDP and core PCE index number to gauge a view for the dollar.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Rising global crude oil prices along with FIIs fund outflow from the equity market will further weaken the Indian rupee during the upcoming week.Accordingly, the rupee is expected to trade with a weak bias upto 75 to a USD in the coming week. \u201cRising crude and trade deficit has been keeping the currency under pressure […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[667],"tags":[],"class_list":["post-246832","post","type-post","status-publish","format-standard","category-business"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/246832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=246832"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/246832\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=246832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=246832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=246832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}