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New influx of IPOs, low oil prices to strengthen the rupee

 | Business News Today

New influx of IPOs, low oil prices to strengthen the rupee

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Inflows of new FIIs for upcoming IPOs as well as falling crude oil prices are expected to strengthen the Indian rupee over the coming week.

However, concerns about the COVID-19 variant – Omicron – will help control the strength of the Indian rupee.

“The last week in December was strong for the rupee and Indian stocks over a 10-year track record,” said Sajal Gupta, head of Forex and rates at Edelweiss Securities.

“Oil prices are expected to be below $ 80 a barrel in the near future due to slowing demand following the re-emergence of Omicron. The possibility of including the bond index and the flows of IPO will be helpful. “

Last week, the rupee covered ground lost by decisive RBI intervention and slowed down the REIT’s buyout of Indian stocks.

Gupta expects the Indian Rupee to test 74.50 this week on a strong note.

The rupee had closed at Rs 75.03 per US dollar on Friday after a good show.

“Domestically, investors will keep an eye on the budget balance and increased spending could restrain the rupee’s sharp appreciation,” said Gaurang Somaiya, Forex & Bullion analyst, Motilal Oswal Financial Services.

“FII participation has been subdued in recent sessions, but an increased influx as the New Year dawns could further support the currency.”

Market participants should follow macro data such as the ECI index (eight main sectors) and budget deficit figures which will be released during the trading week starting on December 27.

Somaiya expects the USDINR (Spot) to be between 74.70 and 75.80 next week.

According to Devarsh Vakil, deputy director of retail research, HDFC Securities: “As it is the holiday season in the United States, most of the major currency pairs are going to trade within a narrow range over the next few years. sessions. “

“The Rupee is expected to trade in a narrow range between 74.8 and 75.3 for the next few sessions.”

New influx of IPOs, low oil prices to strengthen the rupee

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