Updated February 28th, 2024 at 08:48 IST
Traders highlight the Rupee’s struggle to breach the 82.80-82.85 threshold as a crucial obstacle.
Rupee may face pressure: The Rupee is anticipated to encounter challenges on Wednesday, influenced by declines in Asian currencies and its own inability to surpass a crucial resistance level.
Forecasts from non-deliverable forwards suggest that the Rupee will open steady to slightly weaker against the US dollar, following its previous session close at 82.8975.
Traders highlight the Rupee’s struggle to breach the 82.80-82.85 threshold as a crucial obstacle.
According to an FX trader at a bank, a decline below the USD/INR level could trigger notable movements, despite notable inflows being observed.
Speculation has emerged that the Reserve Bank of India might have intervened to absorb dollars in recent trading sessions.
While most Asian currencies declined on Wednesday, the dollar index (USD) remained just below the 104 mark.
Despite weaker-than-anticipated US durable goods and consumer confidence data released on Tuesday, the dollar remained largely unaffected.
US durable goods orders dropped by 6.1 per cent last month, surpassing the 4.5 per cent decline predicted by economists surveyed by Reuters. ING Bank described the data as “messy,” noting that certain core elements and capital shipments figures remained resilient.
Investors await the release of US core PCE (Personal Consumption Expenditures) data, following elevated inflation figures for January. This has led investors to recalibrate expectations regarding the magnitude and pace of anticipated interest rate adjustments.
Currently, investors have priced in 80 basis points of rate cuts for the year, a major decrease from the 175 bps anticipated around mid-January.
(With Reuters Inputs)
