After the dollar index reached a new 2-decade high on Monday, it’s possible that the Indian rupee could start the day somewhat down against the greenback.
In contrast to the previous session’s finish of 79.7950, the rupee is expected to open between 79.84 and 79.86 against the dollar. The country’s currency last week fluctuated between 79.30 and 80.12 despite interventions from the central bank and widespread greenback strengthening.
According to a broker at a bank in Mumbai, the range from last week serves as recent support and resistance levels for the USD/INR couple. The 80 level will be difficult to remove, and exporters and investors will remain drawn to it because of its psychological appeal.
The euro fell due to Russia’s decision to permanently shut down its major fuel supply pipelines to Europe, which fueled concerns about an energy deficit and a drag on economic growth. As a result, the dollar index increased to 110.02.
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Invoking an oil spill in a rotor, Russia postponed a Saturday target for the Nord Stream project to begin carrying oil. At the same time, the Group of 7 finance ministers announced a limit on Russian oil prices.
The dollar index was followed by a fall in Asian currencies. In contrast to the Korean won, which fell 0.6%, the overseas Chinese yuan decreased to 6.9378 to the greenback.
After a U.S. employment report that caused forex brokers in the USA traders to downgrade the likelihood of a 75 basis-point Federal Reserve rate increase this month, the dollar index fell below 108.30 on Friday in trading stocks.
The number of new job gains in the headlines had been in line with forecasts, but they were obscured by a higher rate of unemployment and a slower-than-expected rise in the hourly wage average. After U.S. shares reversed early gains, the dollar bounced back to conclude Friday with a nearly flat price. The S&P 500 Index increased 1.3% earlier on Friday before falling 1% towards the end of the day.
On Monday, Asian shares were neutral while U.S. equity prices were unchanged.