SME Times is powered by   
Search News
Just in:   • Equity indices break two-day losing streak on value buying  • IMF urges Sri Lanka to tighten monetary policy  • Global semiconductor sales to reach $676 bn this year: Gartner  • Tinna Rubber hits upper circuit, investors accumulate 900% returns in year  • Availability of jobs in Japan improves for 1st time in 3 yrs 
Last updated: 09 Jan, 2022  

Rupee.9.Thmb.jpg Rupee expected to weaken on inflation, infection woes

   Top Stories
» Net direct tax collection reaches highest-ever figure in FY 22
» Musk has to manufacture here to sell Tesla cars in India: Gadkari
» Round tripping of industrial inputs by large players unfavourable to local value chains
» Sitharaman engages investors in Silicon Valley
» Modi hails India's success in achieving target of $400 billion of exports
SME Times News Bureau | 09 Jan, 2022
Likely surge in bond yields along with rising Covid cases are expected to weaken the Indian rupee during the upcoming week.

Besides, persistently high energy costs could subdue the rupee bulls.

However, re-commencement of FIIs inflows will arrest any major fall in rupee's value vis-a-vis the US dollar.

"Rising trade deficit as well as concerns over US Fed's taper measures and rising yields can put pressure on rupee in coming year," said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.

"Crude oil too can play spoil sport if it moves towards the 85 levels. Omicoron concerns too may dampen the sentiment."

Last week, rupee was rangebound to close at 74.31 to a USD.

In that period, inflows from Reliance's US dollar bond issuance kept rupee tethered near 74.30 despite the surge in dollar index and higher crude oil prices.

"Next week, surging bond yields, fears of higher covid19 infections, high energy costs and RBI's intervention could spoil the party of rupee bulls," said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

"We expect the rupee to trade between 74.20 to 74.90 next week with a weakening bias."

According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services: "Next week, on the domestic front, market participants will be keeping an eye on the inflation and industrial production number. An uptick in inflation could raise rate hike prospects by the RBI but at the same time a disappointing industrial production could dampen rate hike hope.

"From the US, focus will be on the Fed Chairman's testimony, inflation and retail sales number. A hawkish statement from the Fed Chairman and better-than-expected retail sales number could extend gains for the greenback."

The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 12.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 27 Apr, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter