By Rohit Vaid
Mumbai, Nov 7 (SocialNews.XYZ) Rising corporate fund inflows along with buoyant equities are expected to strengthen the Indian rupee in the coming week.
Analysts have predicted the rupee to range between 73.60 and 74.40 with a "appreciation bias" from last week's band of 73.80 to 74.88.
"Increase in corona cases globally shall keep casting risk on markets, while vaccine development shall keep the hopes high. Besides, the US Fed's vow to keep rates low should help market buoyancy," said Sajal Gupta, Head, Forex and Rates, Edelweiss Securities.
"Another big announcement with regard to Reliance Retail stake sale shall help keep the rupee at a strong footing, and we expect these tranches flowing in at regular intervals for the next two months," Gupta said.
Last week, the rupee closed at 74.08 to a greenback.
"We expect the rupee to halt its current bout of appreciation near the 74-mark and consolidate near that levels for the next week," said Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.
"On the upside, 74.4 will act as a resistance," Vakil added.
Besides, analysts said that an early outcome of the US presidential elections will buoy sentiments.
On the domestic front, market participants will keep an eye out for the inflation and industrial production numbers.
According to Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services: "Expectation is that inflation could inch higher and that could keep rupee gains in check. At the same time, volatility for the rupee has been curtailed as the RBI has been intervening to curb any major appreciation or depreciation of the currency.
"Investors will be awaiting for more clarity on the US presidential election results and that could trigger volatility for major crosses."
In addition, Somaiya expects the rupee to trade positive against the US dollar and quote in the range of 73.50 and 74.50.
(Rohit Vaid can be contacted at rohit.v@ians.in)
Source: IANS
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