INR vs USD: The Indian Rupee (INR) has come down to its 2-month low of 75.66 due to the Russia-Ukraine conflict. According to commodity and money market experts, the Russia-Ukraine crisis is expected to support rising crude prices, which could raise further concerns for the US Fed and other central banks around the world.
He said that the Russia-Ukraine war-like situation is expected to increase crude oil prices further. Due to this, the exit of the US Dollar (USD) of India will put further pressure. Therefore, there will be further weakness in the Indian rupee against the US dollar.
Rupee had fallen on Monday too
The rupee opened at 75.60 per dollar in the interbank foreign exchange market today. Later it slipped to 75.72 per dollar with a loss of 12 paise. On Monday, the rupee had closed at a seven-week low of 75.60 per dollar with a loss of 24 paise. Against the same six currencies, the dollar index, showing the trend of the US currency, fell by 0.18 percent to 96.19.
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can be crude and expensive
“Russia-Ukraine tensions and rising concerns about its impact on crude and potentially higher global interest rates could limit the recovery in the rupee,” said Sriram Iyer, senior research analyst at Reliance Securities. Brent crude futures fell 0.68 percent to $ 95.82 a barrel.
This increase in domestic inflation is expected to continue.
Anuj Gupta, Vice President, IIFL Securities said, “In the last two months, the Indian Rupee has corrected by about 1.80 per cent. Today it has reached a 2-month low of ₹ 75.66. This fall in the Indian currency is on account of rising inflation rate in India of the US dollar, which rose to 5.66 per cent yesterday as against 5.59 per cent in the previous week. This increase in domestic inflation is expected to continue. If Russia Ukraine crisis does not end soon.
This geopolitical crisis has already pushed crude oil prices to high. It can reach $100 per barrel in the near term. If the situation like the Russia-Ukraine war continues even further, then in that case it can go up to $105 per barrel in the short term. ,
Tags: currency, Dollar, Market, Rupee weakness
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