On Monday, the Indian rupee remained stable despite a surge in crude oil prices being counteracted by the weakening U.S. Dollar Index. Closing unchanged at Rs 82.89 against the dollar, it began the day at Rs 82.85, maintaining Friday’s closing rate of Rs 82.91.
Kunal Sodhani, vice president of Shinhan Bank, highlighted 82.77 as support and 83.05 as resistance for USD INR, discussing the impacts of economic data and the ECB’s March meeting stance.
Moody’s upwardly revised India’s 2024 growth forecast to 6.8% from 6.1%, citing robust 2023 economic data and reduced global economic challenges. With India’s real GDP expanding by 8.4% year-over-year in Q4 2023 and full-year growth at 7.7%, the rupee benefited from a weaker U.S. dollar. Expectations that the US Federal Reserve would lower interest rates in June contributed to an increase in the value of the rupee. Trading at 82.89, up 2 paise from Friday’s close, the rupee saw highs and lows of 82.9050 and 82.86, respectively.
Analysts anticipate the rupee strengthening against the US dollar due to a narrowing current account deficit, potentially appreciating to around 79 by the second half of the fiscal year.
