[ad_1]
January 14, 2022 / 12:24 PM IST
Amit Pabari, MD at CR Forex Advisors:
If not stronger US dollar; then India’s own sluggish economic indicators along with supply bottlenecks are likely to pressurize on the Indian Rupee over short term. In commodity pack, Crude oil prices are up by 15% over the last 5 days- quoting near $85 mark, iron ore is up by 37% from its November bottom, copper is up by 8% from December low, Palm oil is higher by 20% over last 19 days.
Further, India’s sea transport freight rates are up by 15% this month amid port congestion and bottlenecks in the US, Europe and China. On trade front, India’s trade deficit widened to $21.7 in December as imports rose by 38%. Other economic data, CPI inflation at 5-month high, IIP at a 9-month low. WPI is expected to remain near 13.5%. Lastly, big bull-RBI has supported the pair by intervening heavily near 73.70-80 levels over the last two days.
Hence, 73.50-73.70 is likely to remain a strong bottom for the USDINR pair and one can expect a strong rebound towards 74.80-75.20 over near term. Today, the pair is likely to trade in the range of 73.80 to 74.15 zone with an upside bias.
[ad_2]
Read More: Market LIVE Updates: Indices Off Day’s Low, Nifty Above 18,200; RIL, TCS, Paytm Most