India Ratings and Research today projected the rupee to remain volatile through the week and trade in the range of 67.15-68.05 against the dollar as investors await cues from central banks of the US and Japan.
“With the likelihood of more volatility in store, the domestic market will emphasise on shifts in global risk balance. The rupee could trade in the range of 67.15-68.05 per USD,” India Rating said in a statement.
It expects investors to stay focused on the near-term trajectory and direction of markets this week.
Over the week, the US Federal Reserve’s two-day policy meeting ending on January 27 will likely to maintain status quo on rates, which will provide an update on its assessment of the US economic outlook.
The Bank of Japan meeting on January 28 will be crucial as pressure mounts on the bank to steer economy out of deflation.
“The rupee movement is likely to stay volatile as central bankers’ policy decisions especially US Fed’s will influence the global risk appetite. In event of a cautious assessment of global conditions by the Fed, emerging economies will gain in the near term,” Ind-Ra said.
The rupee today ended at 67.83, down 20 paise against the dollar.