The Indian rupee is currently facing pressure nearing its lower value. This situation is mainly influenced by factors such as the price of oil and the policy decisions made by the U.S. Federal Reserve.
Based on deliverable forwards (NDF), it is expected that the rupee will open at around 83.25 83.29 against the U.S. Dollar, slightly lower than the previous session’s rate of 83.2675. The local currency is a step away from reaching its historic low of 83.29.
Market sentiment suggests that the rupee will continue to decline in value. A forex dealer from a bank commented, “By observing price movements it becomes evident that the rupee is heading downwards “, while another trader added, “We’ll see how quickly we reach a record low.” These experts anticipate sentiment surrounding the rupee throughout the trading session.
There are speculations among traders that the Reserve Bank of India (RBI) may have taken steps to support and stabilise the value of the rupee in NDF market transactions.
Regarding factors, Brent crude oil prices have dropped below $94 in markets after reaching a year high of $95.96. In the meantime, the U.S. Dollar index saw a drop to 105.08, and Asian currencies stayed relatively stable as everyone awaited the upcoming Federal Reserve decision.
According to predictions, it is expected that the Federal Reserve will keep its policy rate in its forthcoming announcement as futures markets indicate an almost negligible chance of a rate increase.