Stock market volatility to subdue rupee; global cues a concern

Rohit Vaid IANSUpdated: Sunday, November 21, 2021, 03:45 PM IST
article-image
Last week, the rupee displayed strength to touch a high of $73.95 before giving up gains and closing at 74.25 to a greenback Representational Image | |

Stock market volatility as well as hawkish stand by global central banks are likely to subdue the Indian rupee during the upcoming week. Besides, lacklustre performance of recently listed IPOs along with inflationary concerns will hamper any prospects of strengthening.

Last week, rupee displayed strength to touch a high of $73.95 before giving up gains and closing at 74.25 to a greenback.

"Wobbly stock markets and hawkish central banks have left little space for the rupee to strengthen further," said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.

"Expect rupee to trade between 74.10 to 74.80 in coming week."

According to Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities: "USD/INR pair is likely to trade between 73.7 to 74.30 mark this week. "We continue to favour a view that USD/INR pair is likely to strengthen towards 73.5 mark over the next few months in the medium term."

Besides, Vakil expects investments in the form of FDI and FPi flows into equity markets will keep the currency stronger in the medium term. "Early next year, we expect Indian treasuries to be included in the global bond indices, and that will attract more flows rushing into the country."

In addition, Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services said that next week, on the domestic front, market participants will keep an eye on the Q2 GDP number.

"An uptick in growth number could keep the rupee supported at lower levels... We expect the dollar would continue to strengthen against its major crosses and that could weigh on the rupee as well.

"We expect the USD/INR (Spot) to trade sideways with a positive bias and quote in the range of 74.05 and 74.70."

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Grasim Industries Limited inducts Ms. Ananya Birla, Mr. Aryaman Vikram Birla as Directors

Grasim Industries Limited inducts Ms. Ananya Birla, Mr. Aryaman Vikram Birla as Directors

Wipro included in 2023 Bloomberg Gender-Equality Index for the fourth consecutive year

Wipro included in 2023 Bloomberg Gender-Equality Index for the fourth consecutive year

Earnings 2023 LIVE: Adani Transmission net profit rises to Rs 478.07 cr; LIC Housing Finance net...

Earnings 2023 LIVE: Adani Transmission net profit rises to Rs 478.07 cr; LIC Housing Finance net...

OnePlus 11 India launch: Date, price, specifications, and everything you should know

OnePlus 11 India launch: Date, price, specifications, and everything you should know

Rupee falls 65 paise to close at 82.73 against dollar

Rupee falls 65 paise to close at 82.73 against dollar