Rupee hits lifetime low at 76.96 versus USD; analyst sees target of 78, recommends BUY in USDINR futures
Ongoing Russia-Ukraine conflict has had a detrimental impact on the Indian Rupee and the situation is likely to aggravate from here, expert Anuj Gupta, opines. He sees a further weakness in the INR against the green back and expects rupee to hit Rs 78 versus the US Dollar. The view is for the month of March
The ongoing Russia-Ukraine conflict has had a detrimental impact on the Indian Rupee and the situation is likely to aggravate from here, expert Anuj Gupta, opines. He sees a further weakness in the INR against the green back and expects rupee to hit Rs 78 versus the US Dollar. The view is for the month of March.
“Higher inflation, higher crude oil prices, higher commodity prices, outflow of FII's from Equity market are the mojor reason for rupee depreciation. We are expecting now it may test 77.50 to 78 levels,” Gupta said.
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The Indian rupee hit a lifetime low in opening deals on Monday as a sharp surge in global crude oil prices threatened to push up imported inflation and widen the country`s trade and current account deficits, PTI reported.
The partially convertible rupee was trading at 76.92/93 per dollar, after touching 76.96, its weakest level ever. It had closed at 76.16 on Friday, this report said.
The benchmark 10-year bond yield was trading at 6.86%, up 5 basis points on the day.
Oil prices soared more than 6%, touching their highest since 2008 on Monday after the United States and European allies mull a Russian oil import ban while delays in the potential return of Iranian crude to global markets fuelled tight supply fears.
Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that the spot price of Rupee hit 77.02 against the USD. It was earlier recorded at 76.96.
Gupta said that this year rupee has depreciated by 3.60 per cent till now.
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