According to experts, due to the strength of the US currency, the rise in crude oil prices and the Kovid pandemic, pressure on the Indian rupee may increase and the rupee may fall 76-50 against the US dollar this year. Integration can be found all around.
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In contrast to the rally in the stock market, the rupee has mostly weakened against the US dollar in recent months. Experts believe that the US dollar-Indian rupee is nearing the 73.50 level. In the long run, it may fall to 75.50-76 levels and reach 77 by the end of the year. According to experts, the US Federal Reserve’s policy decision and the Biden administration’s stance towards China play a key role in determining the rupee’s movement. Motilal Oswal Financial Services Foreign Exchange and Bullion Analyst Gourang Somaiah said, “The US Federal Reserve was bustling at its last policy meeting, but the central bank’s stance on inflation, growth and the bond-cut program has led to dollar fluctuations.”
He added that crude oil prices have increased inflation in the last quarter and the continuation of this trend could affect India’s overall import bill. Jatin Trivedi, a senior research analyst at LKP Securities, said the rupee’s trend will weaken in the long run as the dollar index stabilizes above the 90th percentile. Apart from this, the high prices of crude oil and the Kovid epidemic have put pressure on the rupee.
The Indian rupee has fallen sharply since June amid rising crude oil prices and the US dollar index, says Sugandha Sach Deva, vice president of commodity and currency research at Religare Broking Limited. Sriram Iyer, a senior research analyst at Reliance Securities, also forecast the weakness of the rupee. “The rupee will remain in the range of 73.30-75.50 and will reach 76.00-76.50 levels by the end of the year,” he said.
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