Choppy Equity Markets to Induce Volatility in Indian Rupee
Global cues and massive outflow of foreign funds from the country's capital markets are expected to induce volatility in the Indian rupee next week.
Representative photo. (Image: Reuters)
Mumbai: Global cues and massive outflow of foreign funds from the country's capital markets are expected to induce volatility in the Indian rupee next week.
"Short-term volatility can be high as stock market remains choppy. Next week, traders will focus on US jobs data," Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
Last week, key equity indices closed on a flat-to-positive note on the back of short covering and influx of domestic funds.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE rose by 71.38 points or 0.99 percent to 31,596.06 points.
The NSE Nifty50 inched-up by just 19.65 points or 0.2 per cent to close the week's trade at 9,857.05 points.
At the same time, the foreign institutional investors (FIIs) sold stocks worth Rs 4,666.53 crore between August 21 and 24, provisional data from the stock exchanges showed.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 5,281.52 crore, or $824.17 million, during the trade week ended August 24.
Banerjee, however, added: "We have been a bear on USD since the early part of February and continue to be so. We expect rupee to continue to trade strong against US dollar over the medium to long term."
According to Hariprasad MP, Senior Vice President and Head Treasury at Centrum Direct, the Indian rupee is expected to remain in the range of 64-64.50 per US dollar.
"Over the past nine months, the rupee has been moving in a narrow range and has been substantially appreciating. The government wants to restrain the higher trajectory of the rupee to keep manufacturers happy but recent developments do not indicate a positive trend," Hariprasad said.
"India has sufficient forex reserves. The RBI (Reserve Bank of India) is likely to intervene only if the rupee exceeds the 64.50 per USD levels."
Recommended For You
- WhatsApp Working on New Update to Improve Photo Sharing Experience
- Motorola Moto E6 Alleged Renders Reveal Textured Back Panel, Single Camera Module
- Xiaomi's Poco F1 64GB Variant Gets Yet Another Price Cut in India; Now Costs Rs 17,999
- Deja Vu? Imran Khan Turning Chauffeur For Emir of Qatar Reminds People of Earlier Example
- ‘Cricket Not About Six Pack’: Jayawardane Uses Malinga’s Viral Image to Hail Heroics Against England
- 01 d
- 12 h
- 38 m
- 09 s