The Indian rupee opened marginally lower at 82.70 per dollar on Tuesday against the previous close of 82.65. The local unit is expected to appreciate on the back of a rise in risk appetite in global markets and weakness in the dollar. Market sentiments improved on hopes of smaller rate hikes from the Fed and sentiments were even lifted after China announced that its requirement for travellers arriving in the country to go into quarantine will end in January raising hopes of wider economic reopening. “However, a surge in crude oil prices may prevent sharp gains in the domestic currency,” said ICICIdirect in a note.
Rupee to strengthen against Dollar
“USDINR spot closed 21 paise lower at 82.65, on the back of risk on sentiments in markets and exporter selling into the year. end. Till the end of this, we could see the Rupee strengthen a bit against the US Dollar, possibly towards 82.35/40 levels. An overall range of 82.35 and 82.85 is expected on spot,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
Rise near 82.70- 82.90 remains a good selling zone
“Surging oil prices amid winter storms across the US which is affecting logistics and production of petroleum products and shale oil could remain a concern for the just eased deficits and a stronger rupee. While a daily struggle for the break below 82.60 is evident for USDINR, once taken out, we could see the rupee rising near 82.20-82.00 levels as played by December seasonality. Until then, a rise near 82.70- 82.90 remains a good selling zone”, said Amit Pabari, MD, CR Forex Advisors.
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