Most experts believe that a rate hike of 25 basis points is imminent in the RBI’s next bi-monthly monetary policy meeting in October
Users of crude derivatives (tyre makers) would face a double whammy - of higher crude price and a weak rupee.
Prior to this announcement, the tenure was a minimum average maturity period of 3 years
On Tuesday, the rupee closed at record low at 72.98 per dollar on the back of higher crude prices. It fell 47 paise in yesterday trading session.
We don’t see a depreciating rupee against the dollar derailing the equity market.
These include names such as IOC, BPCL, Hero MotoCorp, Shree Cements, Ambuja Cements, Havells India, HPCL, ACC, Exide Industries, IGL, and Amara Raja Batteries.
The government is also looking at containing import of gold as it is the second highest commodity imported into the country, after crude oil
ICICI Direct expect the USDINR to find supports at lower levels. Utilise downsides in pair to initiate long positions
The government's latest measures to support the rupee announced last week were particularly underwhelming for market participants who have since increased bearish positioning on the currency.
Analysts believe that a combination of surge in crude prices and trade war tensions weighed on the rupee.
Utilise downsides in USD-INR to initiate long positions, says ICICIdirect.
ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in pair to initiate long positions.
Prasanna said the measure announced by the government are very promising and good on intent but possibly a little bit underwhelming as far as the actual action is concerned
Observing that India is a relatively closed economy, Rice said the contribution of the net exports to growth in the April to June quarter was again stronger than expected and the real depreciation of the rupee can be expected to reinforce this trend.
Listen to Gaurav Kapur, Chief Economist at IndusInd Bank, as he tells Ravi Krishnan about the available options on the table to arrest the decline in the value of the rupee.
The recent high is likely to pose short-term resistance to the pair and consolidation within support at Rs 70.80-71.30 and resistance at Rs 72.50-72.90 zone could be expected for the next 1-2 week, says Navneet Damani of Motilal Oswal Financial Services.
The current fall in the dollar-rupee has more to do with global factors than local. However, a deep surgery is needed. That would include structural reforms that will boost exports and prompt more stable foreign inflows in the form of direct investment
According to Angel Broking, EURUSD appreciated by 1.3 percent last week while EURINR depreciated by 1.15 percent during the same time frame.
Lower support for the rupee is at Rs 70.50 and medium-term bias (for next 1-2 months) remains bullish above the same with test of the ‘Cup & Handle’ target of 74.20 looking likely, says Navneet Damani of Motilal Oswal Financial Services.
News of the meeting and the idea of another round of NRI bonds breathed new life into the markets.
Sakshi Batra is in conversation with Santosh Nair, Editor, Moneycontrol, on how a depreciating rupee can impact the markets in the week ahead.
Rupee opened higher at 71.70 per dollar versus 72.19 Wednesday.
Mohit Ralhan of TIW Private Equity said once the general elections in 2019 are over and a stable government is in place till 2024, the depreciation in INR against US dollar should come back to its structural and gradual rate.
Along with a team of bureaucrats and economists, PM Modi may work out a strategy to bolster market’s confidence and improve the macroeconomic scenario
ICICI Direct expects USDINR to witness selling pressure at higher levels. Utilise upsides in the pair to initiate short positions.