Mumbai. There will be pressure on the rupee in the coming week due to the fear of rising inflation due to rising commodity prices.
Apart from this, the rise in crude oil prices and rise in prices of other raw materials is also likely to increase inflation.
In the opinion of analysts, if this situation continues even further, then the prospects of growth will be less, as well as the pressure to increase the interest rate will also increase.
However, selling of the dollar has stopped the rupee’s fall for the time being. Next week, the rupee is likely to remain in the range of Rs 76 to Rs 76.50 against the dollar.
Sajal Gupta, Head of Forex & Rates, Edelweiss, says the Ukraine war has put pressure on the Indian currency amid rising crude oil prices and rising US bond yields. Worrying about rising inflation has prevailed all over the world and there is no immediate solution to it. Due to these, the rupee will remain weak for now.
Last week, the rupee had lost half a percent due to a strong dollar, rising crude oil prices and investors’ hesitation from risky investments.
Last week, the Indian currency remained in the range of Rs 75.80 per dollar to Rs 76.50 per dollar and finally closed at Rs 76.20 per dollar.
HDFC Securities Deputy Research Head Devarsh Vakil said that the biggest impact on the rupee is crude oil prices and investor sentiment in the stock market.
He said that we expect the Reserve Bank of India to continue to use forex reserves to keep the rupee stable around the current level.
Gaurang Soumaiya, Analyst, Motilal Oswal Financial Services, said next week, investors will be watching crude oil prices and foreign institutional investors will keep an eye on the trend.
The figures for fiscal deficit and trade balance are also to be released next week, which will affect the rupee.
—AnyTV News
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