The Indian rupee is expected to depreciate further on Thursday amid risk aversion in global markets and strong dollar. “Market sentiments were hurt as ongoing war between Russia and Ukraine and sanctions against Russia threaten to increase commodity prices, adding to inflationary pressures and prompting central banks to aggressively tighten their monetary policy. US FOMC meeting minutes showed policymakers were in favour of speeding up the pace of monetary tightening,” said ICICI Direct.

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities

“USDINR spot closed 43 paise higher at 75.75 levels, due to short covering demand from dealers and large bids from importers. Hawkish comments from the Fed vice chair last night triggered a sharp upmove in US bond yields and the US Dollar Index. This pushed USDINR higher. Tonight focus will be on the US FOMC minutes. Traders will seek clarity on the pace of balance sheet reduction and the quantum of the next hike. Over the near term, USDINR is expected to trade within a range of 75.45 and 76.20 on spot.”

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

“Rupee opened on a flat note but fell sharply following broader strength in the dollar against its major crosses. Expectation of hawkish from members at the Fed led to stronger dollar and thereby weighed on the rupee. FOMC meeting minutes released last evening showed policymakers rallying around plans to cut the central bank’s massive balance sheet as soon as next month. On the domestic front, focus will shift to the RBI policy statement that will be released tomorrow. Expectation is that the central bank could continue to keep rates unchanged but their outlook on inflation and growth going ahead could trigger volatility for the currency.  We expect the USDINR(Spot) to trade sideways to positive and quote in the range of 75.70 and 76.20.”

Rahul Kalantri, VP Commodities, Mehta Equities

“USDINR 27 April futures contract hold its support level of 75.35 and recovered again. On the daily technical chart a pair crossed its resistance level of 75.90 again. As per the daily technical chart, we observed that a pair holds its crucial support level of 75.35 and recovered again. Looking at the technical set-up, if a pair cross and sustain above 76.06; could show further strength towards 76.35-76.55 in the upcoming sessions. We suggest for closely watching the level of 76.06 in today’s session for taking any positions in the pair.”

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