New Delhi–A strong US dollar as well as global concerns over the ensuing pandemic is expected to weaken the Indian rupee further during the upcoming trade week.
“Global cues such as a strong US dollar as well as a weak CNH (Renminbi Offshore) will weaken the Indian rupee further,” said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.
“It is expected to trade between 74.25 to 74.60 with an depreciation bias.”
Last Friday, the rupee marked its biggest weekly loss in one and a half months, although it was better than its Asian peers.
It weakened to 74.36 per USD due US Fed’s tapering fears and softer commodity prices.
“Concern that the Delta virus strain could derail the global recovery led to safe haven buying in dollars and risk sentiment took a severe beating this week,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
“Fears of early tapering by US Federal Reserves led to strength in dollar. Dollar index rose to the highest level since November. Spot USDINR is still in the range of 74.50 to 74.10 this month. We expect it to appreciate back to 74-mark next week.”
According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services: “Volatility for the dollar could remain elevated ahead of the important Jackson Hole Symposium that is scheduled next week. Expectation is that the Fed Chairman could signal that the US central bank is ready to start easing monetary support.”
“For the week, the USDINR (Spot) is expected to trade with a positive bias and quote in the range of 74.05 and 75.20.” (IANS)