Tuesday, January 26, 2021
Home Business finance Foreign Fund Inflows to Strengthen Indian Rupee

Foreign Fund Inflows to Strengthen Indian Rupee

Bond Markets and Money Inflow to Strengthen Indian Rupee

Strong foreign fund inflows for domestic equity as well as bond markets are expected to strengthen the Indian rupee in the short run.

“Rupee has been in a tight range lately. In the previous week, the RBI bought US dollars worth approximately $6 billion to stem the rupee’s appreciation,” Sajal Gupta, Head, Forex and Rates, Edelweiss Securities, told IANS.

Follow NewsGram on Facebook to stay updated.

“It is a matter of time that RBI’s interventions weaken to allow rupee appreciation,” he added.

Gupta expects the rupee to range between 73 and 73.50 with a risk of appreciation.

However, the upcoming US elections along with likely Brexit talks and heightened lockdown measures in Europe might dampen sentiments.

Indian Rupee
Strong foreign fund inflows for domestic equity as well as bond markets are expected to strengthen the Indian rupee in the short run. Pixabay

“With event risks like Brexit and US elections on the horizon, volatility is going to be on the cards,” said Rahul Gupta, Head of Research-Currency, at Emkay Global Financial Services.

Want to read more in Hindi? Checkout: एंटरटेनमेंट का नया दौर आ चुका है, नए ट्रेंड आ रहे हैं 

“The USDINR ATM volatility has already shifted close to 7 percent from the 6 percent observed last month. Also, the negative risk sentiments are ushering flow back towards the safe-haven dollar. So in the coming sessions, we can observe some impulsive trading in USDINR and the pair may swing in between 72.75 and 73.75,” he added.

According to Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities: “The volatile last week ended with slightly optimistic note after US President Donald Trump announced that he would personally step in to get reluctant Senate Republicans on board for bi-partisan stimulus deal.

Also Read: India is Cautiously Becoming the Leader in Cleaner Fuels

“The risk-on sentiment (strengthening/ appreciation) is back on better than expected retail sales numbers and the continuation of Brexit talks.” (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Green Tax To Be Levied On Polluting Vehicles: Transport Ministry

The Union Minister for Road Transport and Highways Nitin Gadkari on Monday said his department has approved a proposal to levy "Green Tax" on...

38% Indian Women Techies Prefer WHF

Almost 38 per cent Indian women working in a tech or IT industry prefer working at home to working in the office, says a...

Telangana Boy Develops Smart Wristband Aiding Alzheimer’s

A 13-year-old boy from Telangana, who developed a smart wristband to monitor Alzheimer's patients, is one of the recipients of Pradhan Mantri Rashtriya Bal...

Diwali 2022 Opens Doors To An Extended Temple In Dubai

A new Hindu temple in Dubai, the foundation stone of which was laid last August amidst the pandemic, will open its doors to worshippers...

Changing Mood In Ayodhya Chronicled In New Book

Fear, apprehension and suspicion has finally been replaced with a sense of ease and excitement and Ayodhya, after the Supreme Court verdict - is...

Scientists Ask For Strict Measures To Restrict New Covid-19 Strain

With new Covid-19 strains reported from several parts of the world giving fresh threats to the fight against the pandemic, a group of scientists...

Pandemic: An Eye-Opener For Health Sector

The Covid-19 pandemic should serve as an eye-opener for the government to increase allocation for the health sector in the Union Budget 2020-21, feel...

Tri-colour, The Colour Code For Republic Day

Republic day is around the corner and so is the end of winter fashion. So why not end it in style? Here are some...

Recent Comments