The rupee was flat early Monday and was trading below 80 per dollar, heavily defended so far by RBI intervention, even as the greenback started the week ahead of a Federal Reserve meeting. Did it firmly.
Bloomberg showed that the rupee stood at 79.8587 after opening at 79.8400 against the dollar as compared to the previous close of 79.8537. According to the news agency, the rupee was trading in the range of 79.8350 to 79.8625.
PTI reported that the rupee rose by five paise to 79.85 against the US dollar in early trade.
But a separate report suggests that there is a risk of the rupee depreciating to 82 per dollar in the near future due to widening trade deficit and aggressive rate hike by the US Federal Reserve later this week, to prevent record high inflation according to economists. can be reduced.
However, the RBI has made it clear that they will protect the Indian currency from excessive volatility and limit any sharp movements.
While the central bank maintains that the rupee has a good hold, they were prepared to spend $100 billion in reserves if needed to support the currency in these unprecedented times, when the dollar listed on the other side of the exchange rate was almost Every currency has taken over. a hit.
The dollar was in a strong position as traders brace for a sharp rise in US interest rates this week and seek protection as data points to a weakening global economy.
The greenback Asia was up slightly against most majors at the start of the session, trading at $1.0195 on the euro and consolidating Friday’s losses to buy 136.57 Japanese yen.
The US Federal Reserve concludes a two-day meeting on Wednesday and markets are headed for a 75-basis-point (bp) increase in price, with a nearly 9 percent chance of a 100 bp increase.
“The market reaction will change how Hawkish Chair (Jerome) Powell feels with his determination to moderate inflation due to slowing growth,” Rodrigo Catril, currency strategist at National Australia Bank, told Reuters.
Asian stocks lost ground, retreating from three-week highs on concerns of a global economic slowdown, undermining investors’ risk appetite.
Tracking those cues, Indian equity benchmarks traded lower in opening deals on Monday, marking their six-day win.
Crude oil prices, on the other hand, have continued a recent downward trend, on concerns that an expected hike in interest rates in the US, the world’s biggest oil user, could limit growth in fuel demand. .