This week, the rupee is expected to rise to 77 levels on the spot market; the USDINR pair will trade in this range

This week, the Indian Rupee is expected to rise slightly. Because no important economic data is scheduled to be issued from the United States, volatility for key crosses may be restricted. USDINR is projected to move sideways with a positive bias throughout the day, quoting between 76.20 and 76.80. The rupee fell 32 paise against the US dollar in the previous session, owing to a sell-off in domestic equities and a firm greenback in international markets. Investor sentiment was also harmed by persistent FII outflows. The local currency opened considerably lower versus the US dollar in the interbank forex market, at 76.31, and lost further ground during the session. It had a high of 76.19 and a low of 76.50 during the day. It fell 32 paise from its previous close of 76.17 to 76.19 and 76.50 before resting at 76.49.

The local currency is forecast to start the day around 76.50 and trade in the 76.30 to 76.70 range. The US dollar index has recovered some ground and is now trading at its highest level since March 2020. Although the EM FX has been in a downward trend this month, the Rupee has been hesitant to fall even by a small amount due to RBI and exporter selling. The spotlight this week will be on preliminary GDP and core PCE inflation statistics from the United States. Domestic equities are shaking hands with Asian markets that are weaker. Higher US yields and aggressive Fed rise bets will almost certainly cause overvalued stocks to mean-revert. It’s possible that the fundamentals will strive to overpower the flow story.

The Rupee is under pressure due to a strong US Dollar Index and a weak Chinese Yuan. On spot, the USDINR could rise this week to levels around 76.80/77. The price range could be between 76.30 and 77.00. Overall, the short-term range is likely to be revised to 75.70 to 77.00.