Rupee appreciates on expectations of weak dollar, global risk sentiment
May 10, 2021
The rupee could see an appreciating bias on expectations of a weak dollar and global risk sentiment, channelising the greenback towards high-yielding assets and keeping domestic financial markets supported, say experts.
The domestic unit has appreciated about 60 paise
vis-a-vis the dollar so far this month. It has strengthened from 73.95 per dollar on May 3 to 73.355 on May 10.
Abhishek Goenka, Founder and CEO, IFA Global, observed that the dollar got hammered after the US April jobs data missed expectations by a huge margin on Friday.
The US headline non-farm payroll came in at 2,66,000 against expectations of 10,00,000. “The weak data print would cause the markets to align with the Fed communication of extremely gradual withdrawal of accommodation. The dollar has weakened across the board.