The rupee is not exactly in freefall, but the bearish series does show that the Rupee is sliding down every day. To be precise, the Indian currency has crossed ₹81 against the US Dollar to touch the mark of ₹81.54. This is the third straight session in which the national currency has gone down.
A further slide is still a possibility depending on the kind of ride it chooses to take.
Amit Pabari, the Managing Director at CR Forex Advisors, said that they expected the trading pair of INR/USD to remain volatile. Amit Pabari has hinted for ₹80.50 to be the supporting level without ruling out the upside of ₹82.50.
Amit Pabari’s statement has taken forex brokers in India by storm. This is the extended loss that Sensex and Nifty50 posted on their trading boards. Selling pressure prevailed throughout different sectors, with the global markets split over the decision to pull the plug on their investments.
The recession is in the picture. Global bodies have pointed out that countries may want to brace themselves for what’s coming. The issue of the recession may be tackled but only to delay the inevitable.
The Dollar Index touched a fresh 2-decade high against its six peers: Euro, Yen, Franc, Pound, Canadian Dollar, and Krona. It was last recorded at a high of 0.5% at a value of 113.5. A refreshed data shows the figure on a slightly higher side at 114.4.
Recession fear has not left out Brent Crude Futures as it went on to sit at $85.4 with a rise of 0.4%. WTI Futures was last recorded at $80 per barrel, with an increase of 1.6%.
Inflation and the battle against it are very much alive, with the Fed Reserve doing whatever it can in its capacities. Fed Chair Jerome Powell has stated to do their best, adding that there is no painless way to bring down inflation.
A rise is not the only way, as the Indian currency saw a greener time last week when it appreciated to ₹79.70 against the US Dollar. Forex trading brokers were hopeful to be on the bull for a while before it started falling again. The greenback has fallen to support India’s currency. It can happen again.
The forex brokers USA expects the dollar will strengthen if the US Fed Reserve crosses its Hawkish commitment. Luis Oganes, the Head of currencies, commodities, & emerging market research at JP Morgan, believes that the prospects of the US Dollar gaining strength is here to stay based on how Fed hikes are being discussed.
Luis Oganes further said that the US Dollar would not soon lose its strength around the globe. The Reserve Bank of India will respond to every fluctuation in the global economy. All eyes are now on where the Indian currency goes.