We may see the range shift higher from 75.20-75.90 to 75.90-76.90 in the medium-term. In the absence of a steep USD up move globally, the central bank may continue to step in from time to time to keep volatility in check.
Technical factors suggest the current bullish momentum to continue targeting 76 plus levels. Currency depreciation pressure and falling crude oil price should bode well for rate cuts
We expect the broad 70.70-72.50 range to hold. We expect the RBI to smoothen volatility intraday. A panic move is likely only on a break as well as a close above Rs 72.50 per USD.
Rolling out new schemes without laying down how these would be funded and without elaborating on how they would be executed will not go down well with markets.
The rupee touched a new all-time low of 69.13 against the dollar on Friday. The depreciation in the rupee has been on account of several factors.
"This is a positive move as it creates a level playing field among all jurisdictions and would help prevent arbitrage that was rampant in India," says Dinesh Kanabar, Chief Executive Officer of Dhruva Advisors.
Speaking to CNBC-TV18 Abhishek Goenka, Partner at PWC, said that long-term caital gains tax is a legitimate concern for FPIs.
The rupee opened at 62.55 a dollar from the previous close of 62.23 at the interbank foreign exchange market. It moved in a range of 62.34 and 62.73 before ending at 62.60, a fall of 37 paise or 0.59 per cent.
The Indian rupee has plunged by around 2 percent in just a week. Ironically during the same period the markets saw inflows of up to USD 2.4bn dollars. In the absence of any major news from the domestic markets, the international forces will likely drive the path of the rupee, says Abhishek Goenka, Founder & CEO of India Forex Advisors.
In a listless trade, the rupee today recovered by six paise to close at 54.81 against the USD on the Interbank Foreign Exchange (Forex) market following fresh dollar selling by exporters amid capital outflows.
The RBI has acted according to the expectation of the market. But still we saw Rupee and Sensex turning around on the back of hawkish comments made by the RBI.
The rupee closed marginally down at 54.48 against the US currency amid flat stock markets and recovery in dollar against major world currencies.
The rupee today recouped initial losses on fag-end dollar selling and nearly USD 190 million of capital inflows to close flat at 54.01 in choppy trade. At the Interbank Foreign Exchange (Forex) market, the rupee resumed lower at 54.18 a dollar from previous close of 54.01.
The rupee fell to a fresh record low on Thursday as a sharp increase in petrol prices failed to lift investor sentiment even as it fueled expectations New Delhi might soon take the more politically fraught step of raising diesel prices.
It may be taxing times for some IT companies, after the Karnataka High Court gave Revenue an opportunity to recover major dues from IT companies, reports CNBC-TV18's Payaswini Upadhyay.
After hitting a two month high against the US currency in early trade, the rupee today ended at 44.48/49 down by five paise from its last close, following weakness in local equities amid a firm dollar overseas.