Rupee vs Dollar: On account of weakness in the US Dollar (USD), the Indian Rupee (INR) opened on the higher side in the early morning trade. According to the experts, the Indian currency is trading in the strong range of 76.5 on the upper side and 75 mark on the lower side. They said that due to the weakness in the American Greenback, Indian rupee may appreciate up to 75.20 levels.
Speaking on the INR vs USD trend, Anindya Banerjee, Deputy Vice President at Kotak Securities said, “Rupee is well placed against the US Dollar due to the massive Dollar reserve at the RBI. Due to the weakness in the American currency, we can further witness some upside swing in the rupee against the US Dollar.”
Anindya said that for the last one week, Rupee has been trading in the range of 76.5 on the higher side to 75 on the lower side. But, for immediate short-term, he expected to witness the national currency scaling up to 75.20 levels.
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On the RBI role that helped rupee remain grounded against the US Dollar, Anindya said, “RBI is looking to recoup its reserves it sold during the March quarter and began to mop up this surplus. The high surplus and financial flows from foreigners allowed RBI to keep mopping up the reserves without any upward impact on USDINR. Therefore, in a way, knowingly or unknowingly, RBI may have averted a sharp fall in USD-INR by absorbing the surplus.”
On what investors should do to gain from this INR-USD trend, Anuj Gupta Deputy Vice President — Commodities and Currencies Research at Angel Broking said, “Today, Rupee opened with a positive note due to weakness in dollar and coupled with life time increase in Indian FOREX reserves. However, cut in the global growth forecast may curb the sharp appreciation in Indian rupee. For intraday trading, Rupee has a strong support at 75.30 levels and resistance at 76.00 levels. We recommend selling in USD-INR around 75.70 – 75.80, with the stop-loss of 76.00 and for the target of 75.30 levels. We expect appreciation in Indian Rupee.”