The Indian rupee is expected to appreciate on Tuesday amid weak dollar. In addition, investors will focus on existing data on home sales, as they are expected to decrease from 5.61 million (mn) to 5.39 million. However, the constant outflow of foreign funds may limit the appreciation of the rupee, said ICICIDirect. USDINR is expected to break its immediate support level of 77.90 and continue its downward trend to 77.75. The rupee appreciated against the US dollar as crude oil prices retreated from higher levels. However, the constant outflow of foreign funds has limited the tendency to appreciate the rupee. In the interbank foreign exchange market, the local unit opened strongly and settled at Rs 77.98, an increase of 7 paise compared to the previous close.
Dilip Parmar, Research Analyst, HDFC Securities
The Indian rupee is expected to open slightly positively after the stronger Chinese yuan and the recovery of risky assets. The dollar benefits more than usual from the reluctance to take risks, as other asylum currencies stumble and as risky assets stabilize, there is a chance that it will develop for a long time. Monday was a quiet day in the foreign exchange markets, as volumes were weak due to the holidays in the United States. The USDINR spot opened below 78, but due to the constant weakness of local stocks, pushed the pair a little higher, but closed at 77.98 with a loss of 10 points from the previous day. The pair is expected to consolidate in the range of 77.80 to 78.30 before heading north.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
“The rupee is consolidating in a wide range despite the volatility of domestic and global stocks after the Federal Reserve raised interest rates by 75 bps. Volatility remained low yesterday as US markets remained closed due to National Independence Day on June 16. The dollar, which has gained momentum since the Federal Reserve meeting, is likely to take cues from the Fed chairman’s testimony. The presidency is expected to remain a hawk, and this could keep the dollar’s support at lower levels. Overall, we expect USDINR (spot) to trade with a positive deviation and quotation in the range of 77.70 and 78.50.
Amit Pabari, MD, CR Forex Advisors
“After declining their biggest weekly decline in two years, Indian indices took some relief. This, combined with DXY remaining below 104 levels, bond yields below 7.5%, gave some air to the rupee, leading to its appreciation, as seen yesterday. However, this remained rather short-lived, precisely because of demand from oil companies and importers, which led to a fall of more than 78 rupees. of Russian oil. Therefore, keeping the sword intact on the rupee. With RBI management, the rupee will remain in the narrow range of 77.80-78.20. If the range is broken on both sides, this can lead to a movement of 30 to 50 paises.
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