We expect the Indian rupee to hover in the range of 72.50-73.50 in near term, says Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
Indian rupee extended the early gains and trading at day’s high level at 72.86 per dollar, amid selling seen in the domestic equity market.
It opened flat at 72.94 per dollar against Monday’s close of 72.95. On Tuesday, the currency market was shut on account of Republic day.
At 11:14 IST, the Sensex was down 336.05 points or 0.70% at 48,011.54, and the Nifty was down 91.40 points or 0.64% at 14,147.50.
“The rupee has managed to hold its fort around the 72.90 to 73 levels, but given the selloff in equities and the likelihood of a rebound in the dollar index, we see the trend tilting slightly towards depreciation going forward. In terms of the global cues, the Federal Reserve’s policy decision this week is not expected to be ultra-dovish. More so, markets will be watching the Fed’s guidance on rates and any outlook on its bond buying plan,” said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
“Another key factor to watch out for the rupee is India’s federal budget. If the government compromises on the fiscal guidance by a huge margin in an attempt to revive the economy, rupee may take a hit and further depreciation looks likely on the cards. We expect the Indian rupee to hover in the range of 72.50-73.50 in near term,” she added.
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