Best forex robot View: Rupee may hit 72.50 level in the short term thumbnail

Best forex robot View: Rupee may hit 72.50 level in the short term

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Best Forex (Click Here For Best Forex Techniques) robot

Best Forex (Click Here For Best Forex Techniques) robot Losses in the rupee have actually stayed capped as FIIs continued to put funds into equity and debt sectors.

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Last Updated: Feb 25, 2020, 09.00 PM IST

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RBI’s Forex (Click Here For Best Forex Techniques) reserve for the week ended February 14, rose by another $3.09 billion to $47609 billion.

By Gaurang Somaiya




The rupee after consolidating in a narrow range came under pressure in the last number of sessions, as the coronavirus break out is most likely to darken the outlook of the global economy.

On the domestic side, absence of cues kept the volatility low in the currency, however it appears that the Reserve Bank of India is taking full advantage and is developing its reserves. Data revealed that RBI’s forex reserve for the week ended February 14, increased by another $3.09 billion to $47609 billion, recommending that the main bank is ramping its reserves.

Losses in the rupee have stayed capped as FIIs continued to pour funds into equity and debt segments. This month, currently, FIIs have actually invested around $1.5 billion in the equity section and $1.48 billion in the debt segment. During the weekend, fresh reported cases in South Korea, Italy and Iran interrupted the overall belief of the market. For the week, we expect the USD-INR (spot) to quote in the series of 71.50 and 72.50

The euro remained under pressure for the entire of the week, however increased on Friday mostly as the dollar experienced some revenue booking at greater levels. Financial numbers released from the euro zone have remained in line with expectations and that has kept gains topped in the currency.

In February, the euro fell to the most affordable level because April 2017 as the greenback increased following safe house purchasing on the back of increased reported cases of coronavirus and deaths in China. Today, from the euro zone, market individuals will be keeping an eye on German business environment and German preliminary CPI. Weaker-than-expected economic numbers could continue to keep the currency weighed down versus the dollar.

The pound was weighed down against the United States dollar, but losses for the currency were capped on Friday after UK factories reported the fastest increase in output for 10 months in February. The production PMI increased to its highest level since April and beat all forecasts, although there were indications that the coronavirus outbreak might have an influence on production in Britain. Marginal gains for the currency were seen after Britain’s brand-new finance minister stated he would deliver the budget as planned in three weeks. This week, from the UK, no significant financial information is expected to be launched, and this might keep the volatility low in the currency. We expect the GBP-USD pair to price estimate in the series of 1.2830 to 1.3050





( Gaurang Somaiya is Currency Analyst at MOFSL. Investors are advised to seek advice from financial advisors before taking an investment calls based upon these observations)

( Disclaimer: The opinions expressed in this column are that of the author. The realities and opinions revealed here do not show the views of www.economictimes.com)

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