Rupee vs Dollar: On account of Coronavirus spreading at a fast rate in the US and European countries, the Indian Rupee (INR) is expected to continue nosediving against the US dollar (USD) in near future. According to the currency and Forex Market experts, the Indian Rupee may break its all-time low of Rs 74.78 per dollar and hit Rs 75 per dollar levels in the next one month as Coronavirus will continue to impact the global economy for at least this much of period from now.
Speaking on the Rupee to Dollar deviation Anindya Banerjee, Research Analyst — Derivative and Currency at Kotak Securities said, “Rupee is nosediving because of the Coronavirus affecting the global economy. USD to INR has corrected sharply from the highs of 74.78 spot reference towards 73.50 in the offshore market yesterday. Currently, USD to INR spot reference is quoting 73.80 levels, of 28 paise from the close on Monday. Last night, almost all major global equity indices rebounded very strongly, on the back of the announcement of fiscal stimulus from major economies around the globe. However, today, Asia is bleeding, with US stock futures down over 2 per cent. Volatility is here to stay and hence, USD to INR too may move higher after a gap down.”
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He said that INR may hit 75 per USD levels in the next one month as Coronavirus has affected the global economy to such an extent that its impact will last for at least one month period from now.
Commenting upon the reason for dip in Indian Rupee against the US dollar Anuj Gupta, Deputy Vice President — Currency and Commodity trade at Angel Broking said, “Though Coronavirus hasn’t affected India the way it has affected Europe and the US, it has hit the global economy to a larger extent and its impact is visible on the speculation of the US stimulus package to contain COVID-19 virus impact. If that happens then the US Dollar will gain some lost ground leading to further tumble in the Indian Rupee.”
He said that rupee’s immediate target is 74.50 and if this target is achieved then it may go down by a further 50 to 60 paise. He said that currently, rupee has resistance at 73.20 levels means Rupee is trading in the range of 73.20 to 74.50. The bullish or bearish trend will be decided on the breakage of either side of the rupee to a dollar range.