Rupee to trade in 43.85-44.45 range
The rupee (spot) is expected to trade in a range of 43.85 to 44.45 with an appreciation bias. On the downside, 43.85 looks strong support below which 43.50 could be seen.
Updated:
Rekha Mishra
Senior Research Analyst (Currency) Bonanza Portfolio
The rupee (spot) is expected to trade in a range of 43.85 to 44.45 with an appreciation bias. On the downside, 43.85 looks strong support below which 43.50 could be seen. Immediate resistance is at 44.45, any breakthrough will help the prices to test next resistance at 44.76. Rising domestic inflation, higher interest rates, a high current account deficit and a weaker balance of payments position are the factors in India that will drive the local equity market and in turn provide direction to the rupee.
Rising concerns regarding the euro zone debt issues, coupled with US debt tensions, led to a rise in risk aversion in the global markets. These will be the driving factors for the rupee too. There is an August 2 deadline to raise the debt ceiling limit in the US and if Washington fails, it would put further pressure on the US dollar.
Major rating agencies, including Moody’s, S&P and Fitch, have also warned of an imminent downgrade of the US credit rating and if it happens in the days to come, the dollar may get pressurised further.
Senior Research Analyst (Currency) Bonanza Portfolio
The rupee (spot) is expected to trade in a range of 43.85 to 44.45 with an appreciation bias. On the downside, 43.85 looks strong support below which 43.50 could be seen. Immediate resistance is at 44.45, any breakthrough will help the prices to test next resistance at 44.76. Rising domestic inflation, higher interest rates, a high current account deficit and a weaker balance of payments position are the factors in India that will drive the local equity market and in turn provide direction to the rupee.
Rising concerns regarding the euro zone debt issues, coupled with US debt tensions, led to a rise in risk aversion in the global markets. These will be the driving factors for the rupee too. There is an August 2 deadline to raise the debt ceiling limit in the US and if Washington fails, it would put further pressure on the US dollar.
Major rating agencies, including Moody’s, S&P and Fitch, have also warned of an imminent downgrade of the US credit rating and if it happens in the days to come, the dollar may get pressurised further.
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