The currency markets have gone through a period of high turbulence amid Covid-19 fears. When emerging market currencies have declined 25-40%, Indian rupee has shown significant resilience and depreciated by a mere 6%.
This resilience of the rupee may continue due to improving macros in India. Also, as the RBI has been quite active and announced measures to curb rupee depreciation, the pace of rupee depreciation would remain quite slow. It would continue to outperform the emerging market currencies. USD/INR is expected some reversal from the crucial hurdle of 78.5, towards 75.5.
FII outflows of near
1,23,000 crore in both equity and debt segment has led to recent rupee depreciation. RBI has taken the bold step of selling dollars of more than $17 billion in a month, not seen in a decade
India macros to remain better as Crude Oil is expected to remain lower for longer time frame.
In the previous rupee depreciation cycles, whenever the RBI had started intervening, the rupee depreciation pace was reduced significantly. The same is expected in the current cycle where rupee is already outperforming major emerging market currencies.
It is expect that the US$INR to find strong resistance near 78.5. It could decline from these levels in the medium term towards 75.5.
The material on this site is provided for information purpose only. This associated sites do not accept liability for your use of the materials provided.
Key Highlights :-
Rupee has outperformed other emerging market currencies in the recent Covid-19 mayhem.
Rupee has outperformed other emerging market currencies in the recent Covid-19 mayhem.
FII outflows of near
1,23,000 crore in both equity and debt segment has led to recent rupee depreciation. RBI has taken the bold step of selling dollars of more than $17 billion in a month, not seen in a decadeIndia macros to remain better as Crude Oil is expected to remain lower for longer time frame.
In the previous rupee depreciation cycles, whenever the RBI had started intervening, the rupee depreciation pace was reduced significantly. The same is expected in the current cycle where rupee is already outperforming major emerging market currencies.
It is expect that the US$INR to find strong resistance near 78.5. It could decline from these levels in the medium term towards 75.5.
The material on this site is provided for information purpose only. This associated sites do not accept liability for your use of the materials provided.
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