INR vs USD: After moving in the range of 75-77 per US Dollar (USD), the Indian National Rupee (INR) finally came below 75 levels and closed at 74.84 levels yesterday. According to the currency experts, this rise in the Indian currency is due to the weakness in the US currency and rising news of success in the Coronavirus vaccine testing globally. Apart from this, RBI curtailing its dollar buying strategy also helped INR to recover and come below 75 levels. They said that in the coming fortnight, we can expect Indian rupee to recover up to 74.4 per USD levels.
Speaking on the Rupee to Dollar deviation, Anindya Banerjee, Deputy Vice President at Kotak Securities said, “Finally, the needle moved and by a decent amount. Yesterday, USD-INR closed below the three-month old range of 75.00 to 77.00 on first month futures, at 74.84 levels. I have been warning repeatedly about two important aspects of the market. Firstly, USD-INR’s inability to rise at a time when news flow was horrific and the RBI bought a significant amount of USD, reflected internal weakness. Secondly, it was the fact that once RBI vacates its post, speculators and flows can bring the market down. NDF is showing a flat open but unless RBI steps into buy USD, rupee is expected to continue gaining ground.” Banerjee said that rupee may go up to 74.40 if RBI doesn’t chip in and buy Dollar as it has been doping for the last three months.
See Zee Business Live TV streaming below:
On how much the strong US job data will have its impact at the Dollar Index, Anuj Gupta, Deputy Vice President — Commodities and Currencies at Angel Broking said, “The US job data is for a short-term as it is announced after the gap of a fortnight. It’s GDP and home sale data that will have long-term impact on the Dollar at Dollar Index.”
He said that the rupee will further gain against the US Dollar as more success of Coronavirus vaccine and drugs is coming out from various countries and slowly but steadily people are coming out of the panic globally.