With the value of rupee hitting new lows every week, foreign exchange experts say the worst-case scenario could be that by the end of year, the rupee may depreciate further, on the back of weak global cues, to rest between the range of 80-81 against the US dollar.
Depreciation bias on horizon; rupee likely to test 76 50 level this year: Experts orissapost.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from orissapost.com Daily Mail and Mail on Sunday newspapers.
NEW DELHI: Indian rupee is likely to test 76-76.50 levels as a relatively strong greenback, boiling crude prices and COVID headwinds deepen the depreciation bias for the domestic currency, according to experts.
One of the significantly-hit Asian currency in recent months amid uncertain economic times, rupee is expected to see a consolidation in the vicinity of the current level before being pulled towards the depreciation bias.
While the equity market has been surging with occasional blips, the rupee has mostly been weak against the US dollar in recent months. If the domestic currency fell 2 per cent against the greenback, the slump was much lower at around 0.18 per cent in July.
updated: Apr 07 2021, 20:06 ist
After logging its biggest single-day fall in nearly two years on Wednesday, the Indian rupee is expected to depreciate further as Reserve Bank s plan to purchase Rs 1 lakh crore-worth government bonds in the current quarter spooked sentiments.
Analysts said that Wednesday s loss wherein the rupee tumbled 105 paise to end the day at 74.47 against the US dollar has turned the rupee into Asia s worst performing currency so far this month.
Going forward, the domestic currency is expected to lose further ground and depreciate, they opined.
Some analysts said Reserve Bank s plan to buy government bonds worth Rs 1 lakh crore from the secondary market during the three months ending June 2021 is considered as a quantitative easing. The purchase of bonds under the government securities acquisition programme or G-SAP could go up to Rs 3 lakh crore in the current fiscal.