Rupee: In a range - by Jewwhii41
In my opinion, the spot rupee is likely to rule range-bound till the outcome of the monetary policy next week. A rate hike will fuel the expectation of a bullish rupee since the capital inflow may go up following a widening interest rate differential between rates in India and overseas. The spot rupee is expected to rule in a range of 40.10-40.50 to a dollar.
If there are changes in interest rates, the rupee-dollar exchange rate will look forward to cues from global markets and economic data expected from the UK and the US.
Besides the Federal Open Market Committee of the US will meet on April 30 and the Bank of Japan will publishes its economic outlook report on the same day.
Of late, the rupee has been moving in tandem with the dollar and not the rest of currencies unlike last year.
This year, widening trade deficit and a lack of capital inflow have resulted in depreciation of the rupee against the dollar even as other currencies continue to appreciate against the US currency.
The spot rupee is expected to rule in a range of 40.10-40.50 to a dolla