Huge Dollar Inflows From a Major PSU Spiked to Test The 74.60 Support in USD/INR – Investing.com India

Huge Dollar Inflows From a Major PSU Spiked to Test The 74.60 Support in USD/INR – Investing.com India

A major PSU company has brought in close to USD 1 billion which influenced the currency pair to touch a high of 74.61 on Tuesday. The currency pair is expected to recover and settle at 75 levels before the end of this calendar year.

From the low of 76.31 registered on 16-12-21, the rupee posted a significant recovery of 2.18% to end Tuesday’s trade at 74.65. A further sharp recovery in the rupee is not expected and we strongly advise the importers to hedge their payables upto the end of February to obtain the benefit of a favorable forward exchange rate to retire the import liabilities due on various dates upto the end of February 2022.

The positive domestic equity market, exporter-selling and hopes of inflows from foreign investors in January 2022 have led to a positive undertone in the domestic currency after it touched a high of 74.61 on Tuesday. Easing concerns over the impact of the Omicron variant also enabled the rupee to maintain a firmer undertone against the dollar.

The domestic equities have moved higher during this week. From the opening level on Monday till the closing level on Tuesday, the registered a rise of 949 points (1.67% gain).