Rupee falls to a lifetime low of 76.96 against the US dollar; expert predicts a target of 78 and advises buying USDINR futures.
The ongoing Russia-Ukraine crisis has harmed the Indian Rupee, and the situation is expected to worsen from here, according to expert Anuj Gupta. He forecasts further INR depreciation against the greenback, with the rupee hitting Rs 78 against the greenback. This is the perspective for the month of March.
The Indian Rupee’s depreciation continued on Monday, with the INR trading at a nine-month low against the US Dollar (USD). The rupee has been under pressure as domestic indexes have fallen, according to Motilal Oswal’s research. The Reserve Bank of India’s Monetary Policy Statement sparked the downward trend, it added.
What does this signify for currency dealers, and how would a sinking rupee affect the entire commodity situation? Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities, provides valuable advice. Check it out!
On the NSE today, the USDINR April Futures finished at 75.20, up about 0.5 percent. It reached a high of 75.44 during the day. At 74.90, the VP advises buying USDINR April Futures. The stop loss is set at 74.40, and the target price is set between 75.50 and 76.
The decreasing INR will have a detrimental influence on the exchange rate, making gold and oil more expensive, according to Gupta. While oil prices have remained steady due to decreasing global crude oil demand, a stronger exchange rate means that import costs will stay strained. He went on to say that this could have an influence on the price of gasoline and diesel in the long run.
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