Weekly Rupee View: INR stays flat

The rupee (INR) has remained flat over the past week. It closed at 82.3313 against the dollar on Monday. This is despite good foreign inflows. According to NSDL (National Securities Depository Limited) data, net inflows over the past week amounted to more than $400 million. This was supported by good inflows in the stock market, which is now seeing some recovery.

so he said, The rupee is likely to face some downside pressure like The price of crude oil rose sharply this week, and the price may continue at a higher level, at least in the next week. Prices rose after OPEC announced production cuts at its last meeting.

Overall, risk seems to be evenly balanced and USD/INR is likely to hold steady in the near term. The chart also indicates that the currency is likely to move sideways.

Schedule

The rupee, which is currently trading around 82.33, is facing resistance at 82.15. While it was unable to breach this barrier, it did not fall either, as the 82.50 level was providing support. There is a good chance that the local currency is likely to stay within the range of 82.15-82.50 in the near term. The widest range could be 82-83. The rupee must break out of this broad range to establish the next stage of its trend.

The dollar index, although it has been largely flat, the price action is giving it a bearish bias. Currently trading at 101.85, the downside potential is high. Closest support is at 101. Subsequent support is at the crucial level of 100. The dollar index must move above 105 to change the near-term trend positively. Until it stays below 105, the slope will be bearish, and this can help the rupee.

prospects

The positive impact is likely to be offset by potential inflows of foreign investment index and downward pressure from higher crude oil prices. This can effectively keep the rupee steady in the near term. We expect the INR to remain between 82.15 and 82.50 this week.