The greenback hit a five-month excessive in opposition to a basket of currencies on Friday as a consequence of fears of an escalation of battle in West Asia after Iran launched a drone assault on Israel.The assaults got here at a time when the greenback had already been gaining floor after indications that the US Fed was unlikely to chop charges in 2024.
“Brent has crossed $92 and will even transfer towards $100. The greenback index is above 106 and the rupee is buying and selling at 83.56 within the NDF (non-deliverable forwards) market. We will count on every week of excessive volatility beginning on Monday,” mentioned Ok N Dey, a overseas trade guide who advises companies on foreign exchange technique.
Riya Singh, an analyst with Emkay International, mentioned, “The sturdy efficiency of the greenback index and rising US treasury yields proceed to exert strain on the rupee, which ended the week on a depreciative notice in opposition to the sturdy buck. Expectations of delayed Fed charge cuts and elevated crude oil costs additional contribute to the rupee’s challenges. Nonetheless, RBI intervention and promoting by exporters is predicted to restrict rupee depreciation to ranges round 83.50 to 83.65.”
In line with Singh, the rupee is predicted to oscillate throughout the vary of 83.20 to 83.55 within the coming week, topic to market dynamics and central financial institution actions.
