The Indian rupee is expected to appreciate on Tuesday amid dollar weakness. Additionally, investors will focus on existing home sales data as it is expected to fall from 5.61m (mn) to 5.39m. However, uninterrupted outflows of foreign funds could limit the rupee’s appreciation bias, ICICIDirect said. USDINR is likely to break its immediate support level of 77.90 and continue its downtrend towards the 77.75 level. The rupee appreciated against the US dollar as crude oil prices retreated from high levels. However, continued outflows of foreign funds limited the rupee’s appreciation bias. In the interbank foreign exchange market, the local unit opened strongly and stood at Rs 77.98, up 7 paise from its previous close.
Dilip Parmar, Research Analyst, HDFC Securities
“The Indian Rupee is expected to be slightly positive at the open following a stronger Chinese Yuan and a rally in risky assets. The Dollar benefited more than usual from risk aversion as other safe-haven currencies stumble and risk assets stabilize, there is a chance to unwind the dollar in the long run.Monday was a calm day in the FX markets, with volumes weak due to the US holiday. USDINR opened below 78 but due to continued weakness in local equities, pushed the pair slightly higher but closed at 77.98 with a loss of 10 paise from the previous day. a range of 77.80 to 78.30 before heading north.
Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services
“The Rupee consolidated in a wide range despite volatility in domestic and global equities after the Federal Reserve hiked rates by 75 basis points. Volatility remained low yesterday as US markets remain closed due to of National Independence Day on June 19. The dollar that gained momentum after the Federal Reserve meeting is expected to draw on the testimony of the Fed Chairman.The expectation is that the President may continue to stay hawkish and that could keep the USD supported at lower levels Overall, we expect the USDINR (Spot) to trade with a positive bias and quote in the range of 77.70 and 78.50.
Amit Pabari, MD, CR Forex Advisors
“After posting their biggest weekly decline in 2 years, Indian indices took some relief. This, coupled with the DXY remaining lower near the 104 levels, bond yields remaining below 7.5% gave some headwind. respite in the rupee, which led to its appreciation as seen yesterday.However, this remained quite fleeting and definite due to demand from oil companies and importers, which caused the rupee to fall back above- above the 78 mark. In addition, oil prices resumed their ascent after the United States, Canada and other allies are in talks to impose a price cap on Russian oil. of the sword intact on the rupiah With the direction of RBI, the rupiah will remain in a narrow range of 77.80 to 78.20 If the range is broken on either side, it may result in a move of 30 to 50 paisa .
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