INR vs USD: Indian rupee may appreciate up to 72.70 against US dollar, say experts
INR vs USD: On account of slight improvement in the COVID-19 situation in India, increasing inflows in the Indian markets, labour reforms and Indian forex reserves at all-time high, the Indian rupee is expected to appreciate against the dollar up to 72.70 levels.
INR vs USD: On account of slight improvement in the COVID-19 situation in India, increasing inflows in the Indian markets, labour reforms and Indian forex reserves at all-time high, the Indian rupee is expected to appreciate against the dollar up to 72.70 levels. According to the currency experts, improving COVID situation in India has pushed the morale of the FIIs and the DIIs and at the same time the national forex reserves at the record high will help control INR vs USD deviation in India's favour.
Speaking on the rupee vs dollar deviation, Anindya Banerjee, Deputy Vice President at Kotak Securities said, "Slight improvement in the COVID-19 situation in India and increasing inflow in the Indian markets and labour reforms are the major reasons for the rise in rupee against dollar. Indian Rupee is being shielded by the gradual re-opening of the economy and series of reforms undertaken by GoI to unshackle long term growth potential of the economy. The Lok Sabha passed three important labour codes that are positive for businesses as it allows them flexibility in hiring and retrenchment, makes industrial strikes difficult besides, facilitates ease of doing business and helps expand the social security net for informal workers."
Anindya went on to add that the USD-INR has been flat over the past three weeks, even though Nifty has witnessed a peak to trough drawdown of over 6 per cent and USD is trading at the highest level since July against major currencies. This proves the strength in the Rupee. It has been possible due to relentless inflows in domestic assets and speculative interest to be long Rupee and earn the carry.
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Standing in sync with Anindya Banerjee's views, Anuj Gupta, Deputy Vice President — Commodities & Currencies at Angel Broking said, "Rupee has been rising because of the Indian forex reserves at its all-time high as well. The Indian Rupee is rising because the US dollar has become weak at the Forex Market against the major global currencies. So, both, domestic and global factors are helping the Indian national currency to gain against the US dollar." Gupta said that rupee may touch 72.70 to 72.80 per dollar mark in next one week.
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