Rupee to remain stable against Dollar on easing oil prices
Due to fast approaching Lok Sabha elections, easing crude oil pries and the RBI adopting buy back policy in regard to rupee-dollar deviation, rupee is expected to remain in 71-72/dollar range
On account of fast approaching Lok Sabha elections, easing crude oil pries and the Reserve Bank of India (RBI) adopting buy back policy in regard to rupee-dollar deviation, the Forex experts have expressed that the Indian currency would remain stable and won't go beyond Rs 72.5/dollar levels. They said rupee would slip beyond Rs 72 hurdle when the Brent Crude goes beyond $64/barrel levels in international commodity markets (WTI).
Speaking on the matter Anuj Gupta, Deputy Vice President — Research Commodity and Forex at Angel Broking told Zee Business online, "Since the US dollar is correcting against six major currencies at dollar index, foreign investors have to move towards emerging economies in coming quarter where India looks positive as China is struggling with its recent data and recent trade talks with the US failed to give any strong positive results." He said that easing oil prices would also be a major reason for rupee maintaining its stability.
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Standing in sync with Anuj Gupta of Angel Broking; Anindya Banerjee, Research Analyst — Derivative and Currency at Kotak Securities told, "The expected Sino-US trade talks on March 1 would be the biggest trigger for rupee against the US dollar. The Reserve Bank of India is selling dollar every time the rupee touches 72 per dollar levels. Since, the Brent Crude Oil is oscillating in the range of $60/barrel to $64/barrel levels and OPEC nations are not in mood to change their output till it reaches the $70 per barrel levels, oil prices are expected to remain stable or decline in the global markets — a relief that gives Indian currency to remain stable if not to gain the ground it lost." Anindya added that in case if the Brent Crude Oil price touches $70/barrel, the rupee will face some pressure and can slip up to 72.5/barrel mark. He said that the coming RBI Monetary Policy Review would also have its impact on rupee-dollar deviation and any cut in Repo Rate may help rupee further strengthen its ground against the US dollar.