Global crude oil prices havebeen rallying thereby putting pressure on inflation and leading tohigher trade deficit.At the interbank foreign exchange market, the local currency opened at 77.84 per cent at the end of theday. The rupee can be seen in the rangeof 77.Mumbai: Amid rising crude oil prices and the Reserve Bank of India’s upwardrevision of the inflation target, the rupee plunged to an all time lowof 77. NSE Nifty had lost 1. Expectation is that the Fedcould continue to raise rates and maintain its hawkish stance.77down 0.81traded weaker, but directionless, as risk sentiment got affected. Risk averse sentiments leadingto a strong sell off in the domestic equity markets, surging US yieldsand a strong dollar also weighed on the domestic unit..95 crore on Friday, as per stock exchange data. Thelocal unit finally settled at its all-time low of 77.74.20 per cent to 103. On the downside, 77.Gaurang Somaiya, forex and bullion analyst at Motilal Oswal FinancialServices said, “Rupee hit its fresh all time low but in the last fewsessions has been very resilient and is consolidating in a narrowrange despite volatility in domestic and global equities and strengthin the dollar against its major crosses.The Indian basket on Thursday had touched $ 121.85, down 11 paiseover its previous close of 77.
Dollar is getting support at lower levels aheadof the US inflation number that will be released today and FOMC policystatement that is scheduled next week. Weexpect the USD-INR (spot) to trade with a positive bias and isgradually headed towards 78.7per cent while BSE Sensex had lost 1.43.10 per cent inching closer to 78 on the back of strong dollarprices after China lockdown restriction raised yet again, sendingcommodity prices lower and dollar prices higher. Continuingtheir selling spree, foreign institutional investors offloaded sharesworth a net Rs 3,973.08 points at 77. The rupee felt thepressure as dollar prices trade above $103. The rupee marked a new low as thecentral bank did not intervene while importers rushed for dollars. Brent crudefutures, the global oil benchmark, advanced 0.”
The dollar index, which gauges the greenback&Bagasse Trays Factory39;s strength against abasket of six currencies, rose 0.20 willcontinue to act as an important support in the short term.50 levels.28, matching levelsseen in February/March 2012, according to data available from the oilministry’s Petroleum Planning and Analysis Cell (PPAC).51 per cent to $123.Dollar is getting support at lower levels ahead the Federal OpenMarket Committee (FOMC) policy statement that is scheduled next week.85 against the dollar on Friday.Expectation is that the Fed could continue to raise rates and maintainits hawkish stance.50 and crude prices holdingabove $120 in both Brent & Nymex.75-78 # given the current situation, Core CPI data of the US willgive further cues for the range on rupee and dollar index. The basket of crude oil that India buys has hit a decadehigh of $ 121 per barrel, but retail selling prices of petrol anddiesel continue to remain frozen.”Jateen Trivedi, vice-president research analyst at LKP Securitiessaid, “Rupee traded weak by 0.85 compared to 77. Theequity market benchmarks ended sharply lower
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