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Rupee to depreciate on elevated crude oil prices, hawkish Fed; USDINR pair to trade in this range

Mount Equity Group Tokyo Japan > News > Markets > Rupee to depreciate on elevated crude oil prices, hawkish Fed; USDINR pair to trade in this range

The rupee is expected to depreciate today due to higher crude oil prices and concerns over rising geopolitical tensions between the US and Russia.

The rupee on Tuesday depreciated by 16 paise against the US dollar on account of month-end dollar demand from oil importers and a stronger American currency in overseas markets. Pessimistic outlook and investors’ weak appetite for riskier assets also weighed on the local unit. At the interbank foreign exchange market, the rupee opened at 74.60 against the greenback and witnessed an intra-day high of 74.57 and a low of 74.80 during the session before settling at 74.76, down by 16 paise over its previous close of 74.60. Rupee is expected to slip further on strong dollar, elevated crude oil prices, Fed interest rate hikes and risk-off, according to analysts.

“On Thursday, the US dollar rose to a five-week high as Federal Reserve Chair Jerome Powell signaled that interest rate hikes…

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