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 erased most of the intraday gains and ended near the day’s low level at 72.92 per dollar, amid profit booking saw in the domestic equity market.
It opened flat at 72.94 per dollar against Monday’s close of 72.95 and traded between 72.78-72.94.
At close, the Sensex was down 937.66 points or 1.94% at 47,409.93, and the Nifty was down 271.40 points or 1.91% at 13,967.50.
“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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