The Indian rupee is expected to depreciate on Wednesday amid strong crude prices. Investors will focus on the appearance of US Fed Chairman Jerome Powell before the Senate; and UK CPI number. In the near term, USDINR is expected to trade in a range of 77.80-78.40 with an upward bias. After halting its three-day bullish streak, the rupee fell against the US dollar in the previous session as continued outflows of foreign funds and surging crude oil prices weighed on investor sentiment. In the interbank FX market, the local unit opened at 78.00 and traded in a tight range before finally ending at 78.13, down 15 paise from its previous close.
Dilip Parmar, Research Analyst, HDFC Securities
“Indian Rupee set to open slightly lower after weaker peers. Falling Yen could eventually lead to competitive devaluations across Asia, starting with Korean Won and Chinese Yuan. USDJPY surges to 136 .49 hitting the pair’s high since September 1998 and is currently trading around 136.26. Futures markets point to an open 3-4 paise lower for the Rupee on national exchanges.Technically, the USDINR spot has resistance at 78.30 and support at 77.70 Bias remains bullish as long as the pair holds above 77.70 Focus will be on Jerome Powell’s appearance before the Senate later in the day day seems to be a cause for anguish.
Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services
“The Rupee continued to trade in a narrow range and volatility in the currency remained low even after the Federal Reserve decided to hike rates by 75 basis points last week. on the Fed Chairman’s testimony and the commentary is expected to be hawkish. This could continue to keep the Dollar supported at lower levels and keep major crosses under pressure. The Dollar edged lower after the data showed that sales of existing homes in the United States fell to a two-year low in May, as prices hit a record high and mortgage rates rose again, driving entry-level buyers out of the market. Today the focus will be on the UK CPI figure and testimony from the US Fed Chairman and it is likely to trigger some volatility for major crosses. we expect the USDINR (Spot) to trade with a positive bias and range between 77.70 and 78.50.
Anindya Banerjee, Vice President, Currency and Interest Rate Derivatives at Kotak Securities
“USDINR spot closed 9 paise higher at 78.09, helped by importer hedging and oil demand. In the near term, we expect USDINR to trade in the 77 range. .80 and 78.40 with a bullish bias With a futures premium on a % of spot trading at an 11-year low, there will be more demand from importers and less selling from exporters. carry may be discouraged due to such a low premium.
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