The Indian rupee is likely to get relief from back-to-back large share selling as well as possible inflow of foreign inflows after the Indian rupee depreciated due to rising oil prices. According to a Bloomberg survey, a report by NDTV said that the currency is estimated to be at 74 per dollar by the end of December.
The Indian rupee, which was emerging Asia’s worst performer in the past few months, ended 15 paise higher at 75.37 against the US dollar following a rally in domestic equities and a weak US currency in overseas markets. Besides, lower crude oil prices and soft retail inflation in September also supported the rupee sentiment, forex dealers said.
In the interbank forex market, the rupee opened with strength at 75.29 against the greenback. The domestic unit fluctuated between 75.19 and 75.51 during the session. The rupee had closed at 75.52 against the dollar on Tuesday.
Retail inflation eased to a five-month low of 4.35 per cent in September from 7.27 per cent in the same period a year ago, driven by fall in prices of vegetables and other commodities. “India’s CPI fell to a five-month low of 4.35 per cent in September, which is within the RBI’s comfort zone of 2- 6 per cent, giving the RBI room to continue its accommodative policy stance.
NDTV claims that as Warren Buffett’s Paytm prepares to raise around $10 billion in initial share sale, there will be more influx of Indian digital companies.
So far, the RBI’s soft intervention to counter currency losses has not gone down well with traders. According to a report by NDTV, “The rupee has depreciated 3% since the beginning of September, and India Forex Advisors Pvt. says that the RBI may have allowed losses with the intention of correcting the overvaluation of the rupee.
“The rupee has come under pressure as rising commodity prices rekindled concerns about inflation and the financial health of the net oil importing country. The growing bets of US stimulus taper a stronger dollar, the report said. Emerging market currencies have been affected.
with wired input
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