Due to importers' desire for dollars, the rupee falls; a little weekly drop is seen

Due to importers' desire for dollars, the rupee falls; a little weekly drop is seen

Next week, investors will be watching US and Indian inflation statistics, which will be a more significant indicator for the rupee.

In the next week, traders anticipate that the rupee will stay between 82.80 and 83.20.

Due to pressure from dollar demand from importers, particularly regional oil corporations, the Indian rupee ended the day down on Friday, according to dealers.

The rupee fell 0.1% vs the US dollar to settle at 83.0350 after closing at 82.9550 the previous day. Additionally, the local unit reported a 0.1% weekly drop.

The majority of Asian currencies were range bound and the dollar index remained mostly stable at 104.2, although predictions for an early rate decrease by the US Federal Reserve put pressure on the currency at the conclusion of the week.

According to CME's FedWatch tool, the likelihood of the Fed lowering rates in March has dropped below 20%. Rates for May have also decreased, from over 73% a week ago to roughly 60%.

Concerns over the Middle East's war intensifying led to a 3% increase in Brent crude futures on Thursday, which culminated in a high of $81.84. The rupee was also negatively impacted by increased oil prices on Friday.

A currency dealer at a state-run bank said that despite the pressure, dollar selling by foreign banks helped halt the rupee's slide over the week.

In the next week, traders anticipate that the rupee will stay between 82.80 and 83.20.

Next week, investors will be watching US and Indian inflation statistics, which will be a more significant indicator for the rupee.

According to Reuters' survey of experts, month-over-month core consumer price inflation in the US is predicted to remain stable at 0.3% in January.

According to Abhilash Koikkara, head of currencies and rates at Nuwama Professional Clients Group, overall rupee price movement "remains lackluster" and the rupee is still above its current range despite the possibility of a spike in the dollar index due to US inflation data. Unable to go.