Categories: Economy

Strong equity, bond inflows to strengthen rupee

Strong foreign fund inflows for domestic equity as well as bond markets are expected to strengthen the Indian rupee in the short run.

"Rupee has been in a tight range lately. In the previous week, the RBI bought US dollars worth approximately $6 billon to stem the rupee's appreciation," Sajal Gupta, Head, Forex and Rates, Edelweiss Securities, told IANS.

"It is a matter of time that RBI's interventions weaken to allow rupee appreciation," he added.

Gupta expects rupee to range between 73 and 73.50 with a risk of appreciation.

However, the upcoming US elections along with likely Brexit talks and heightened lockdown measures in Europe might dampen sentiments.

"With event risks like Brexit and US elections on the horizon, volatility is going to be on the cards," said Rahul Gupta, Head of Research-Currency, at Emkay Global Financial Services.

"The USDINR ATM volatility has already shifted close to 7 per cent from the 6 per cent observed last month. Also, the negative risk sentiments are ushering flow back towards the safe-haven dollar. So in the coming sessions, we can observe some impulsive trading in USDINR and the pair may swing in between 72.75 and 73.75," he added.

According to Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities: "The volatile last week ended with slightly optimistic note after US President Donald Trump announced that he would personally step in to get reluctant Senate Republicans on board for bi-partisan stimulus deal.

"The risk-on sentiment (strengthening/ appreciation) is back on better than expected retail sales numbers and continuation of Brexit talks.".

AddThis Website Tools
IANS

Recent Posts

PM Modi meets President Murmu, briefs her on Operation SindoorPM Modi meets President Murmu, briefs her on Operation Sindoor

PM Modi meets President Murmu, briefs her on Operation Sindoor

Prime Minister Narendra Modi met President Droupadi Murmu on Wednesday and briefed her on Operation…

1 minute ago
Amit Shah calls meeting with Chief Ministers of various statesAmit Shah calls meeting with Chief Ministers of various states

Amit Shah calls meeting with Chief Ministers of various states

Union Home Minister Amit Shah on Wednesday held a meeting with the Chief Ministers and…

31 minutes ago
IndiGo cancels flights to eleven cities due to airport closures following Op SindoorIndiGo cancels flights to eleven cities due to airport closures following Op Sindoor

IndiGo cancels flights to eleven cities due to airport closures following Op Sindoor

The budget airline carrier IndiGo on Wednesday cancelled its flight operations in 11 cities across…

37 minutes ago
Indian Armed Forces detail Op Sindoor: 5 terror camps in PoK destroyed in retaliation for Pahalgam AttackIndian Armed Forces detail Op Sindoor: 5 terror camps in PoK destroyed in retaliation for Pahalgam Attack

Indian Armed Forces detail Op Sindoor: 5 terror camps in PoK destroyed in retaliation for Pahalgam Attack

The Indian Armed Forces on Wednesday, provided detailed insights into Operation Sindoor, a precision strike…

3 hours ago
“Locations selected to avoid civilian damage and infrastructure”: Wing Commander Vyomika Singh on Operation Sindoor“Locations selected to avoid civilian damage and infrastructure”: Wing Commander Vyomika Singh on Operation Sindoor

“Locations selected to avoid civilian damage and infrastructure”: Wing Commander Vyomika Singh on Operation Sindoor

Wing Commander Vyomika Singh who briefed the media along with Foreign Secretary Vikram Misri and…

4 hours ago
“10-15 missiles hit here,” Muzaffarabad residents recall moment of Indian precision strike in PoJK“10-15 missiles hit here,” Muzaffarabad residents recall moment of Indian precision strike in PoJK

“10-15 missiles hit here,” Muzaffarabad residents recall moment of Indian precision strike in PoJK

Shelling was reported on early Wednesday, which destroyed a mosque in Muzzafarabad in Pakistan Occupied…

4 hours ago