The 22nd of May in Mumbai (Reuters) After the Indian central bank announced that it would stop issuing the highest value currency note, the rupee is anticipated to depreciate against the greenback at market open.
The rupee will open at roughly 82.80–82.84 to the dollar, down from 82.66 in the previous session, according to non-deliverable forwards.
The Reserve Bank of India said on Friday that it would stop issuing notes with a denomination of 2,000 rupees.
The 22nd of May in Mumbai (Reuters) After the Indian central bank announced that it would stop issuing the highest value currency note, the rupee is anticipated to depreciate against the greenback at market open.
The rupee will open at roughly 82.80–82.84 to the dollar, down from 82.66 in the previous session, according to non-deliverable forwards.
The Reserve Bank of India said on Friday that it would stop issuing notes with a denomination of 2,000 rupees.
He stated that “conducting sell/buy swaps (on USD/INR) would address cash dollar shortage, suck out rupee liquidity, and could offer respite.”
“For the pair, 82.90 has served as a significant resistance. It will be intriguing to watch if the RBI places a cap in this situation.
Other Asian currencies, as opposed to the rupee, were generally stronger after U.S. Federal Reserve Chair Jerome Powell adopted a fairly dovish posture in opposition to market expectations.
Powell stated on Friday that it is still uncertain if higher U.S. interest rates will be necessary.
Chris Weston, head of research at Melbourne-based Pepperstone, stated in an email that “market pricing is firmly back to thinking the Fed will pause” as a result of Powell’s speech.