Rupee opens higher, may appreciate on weak dollar, declining crude oil prices; USDINR to trade in this range

Rupee opens higher, may appreciate on weak dollar, declining crude oil prices; USDINR to trade in this range

The Indian rupee opened marginally higher at 81.72 per dollar on Wednesday versus the previous close of 81.78. The local unit is likely to appreciate further today amid a rise in risk appetite in global markets and softening of crude oil prices. Further expectation of a decline in US CPI numbers could force the Fed to change its hawkish stance, leading to a weakening dollar. “US$INR (January) is expected to trade in a range of 81.40-82.20 with a weaker bias,” said analysts at ICICIdirect.Rupee likely to say strong amid weak dollar, declining crude prices

“The earlier negative divergence between the DXY and Rupee is now starting to converge with the trend, which will keep the Rupee higher. Weakness in the oil prices is likely to further reduce the pressure on the Rupee as oil companies would step back. Overall, we expect the Rupee to trade higher and if 81.50 is taken out and RBI remains absent, the unit is moving towards 81.00 levels, keeping the range for the week between 81.00-81.80 levels,” said Amit Pabari, MD, CR Forex Advisors.

Rupee may head towards 81 mark soon

“USDINR spot closed 57 paise lower at 81.78, lowest level since December 5th, 2022. Corporate inflows triggered the sharp decline. Once prices drifted below 82.10, dealer stops were hit and prices accelerated downward. Over the near term, USDINR can fall further, to catch up with the other USD peers. We expect a broad range of 81.00 and 82.20 on spot,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

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