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Rupee opens higher, may appreciate further on weakness in dollar, strength in global equity markets

Rupee Vs Dollar: Rupee opens marginally higher at 82.70 per dollar, may appreciate further on weakness greenback, rise in risk in equity markets.

Rupee opens higher, may appreciate further on weakness in dollar, strength in global equity markets
USDINR spot price is expected to trade in a range of Rs 82 to Rs 83.30

The Indian rupee opened marginally lower at 82.70 per dollar on Tuesday against the previous close of 82.65. The local unit is expected to appreciate on the back of a rise in risk appetite in global markets and weakness in the dollar. Market sentiments improved on hopes of smaller rate hikes from the Fed and sentiments were even lifted after China announced that its requirement for travellers arriving in the country to go into quarantine will end in January raising hopes of wider economic reopening. “However, a surge in crude oil prices may prevent sharp gains in the domestic currency,” said ICICIdirect in a note.

Rupee to strengthen against Dollar

“USDINR spot closed 21 paise lower at 82.65, on the back of risk on sentiments in markets and exporter selling into the year. end. Till the end of this, we could see the Rupee strengthen a bit against the US Dollar, possibly towards 82.35/40 levels. An overall range of 82.35 and 82.85 is expected on spot,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities.

Rise in crude prices may cap upside in Rupee

“We expect Rupee to trade with a positive bias on weakness in Dollar and positive domestic markets. Decline in safe haven appeal on rise in risk appetite in global markets may also put pressure on Dollar. However, surge in crude oil prices cap a sharp upside in Rupee. USDINR spot price is expected to trade in a range of Rs 82 to Rs 83.30,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Rise near 82.70- 82.90 remains a good selling zone

“Surging oil prices amid winter storms across the US which is affecting logistics and production of petroleum products and shale oil could remain a concern for the just eased deficits and a stronger rupee. While a daily struggle for the break below 82.60 is evident for USDINR, once taken out, we could see the rupee rising near 82.20-82.00 levels as played by December seasonality. Until then, a rise near 82.70- 82.90 remains a good selling zone”, said Amit Pabari, MD, CR Forex Advisors.

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First published on: 27-12-2022 at 09:24:05 am