It has opened lower by 33 paise versus Monday's close 72.91.
Indian rupee has recovered over 40 paise from its all-time low of 73.41 per dollar touched in the early trade on Wednesday. It is trading lower by 5 paise around 72.96 per dollar.
It has opened lower by 33 paise at 73.24 versus Monday's close 72.91 per dollar.
Rupee continued to remain under pressure and today is expected to open at fresh record low levels following sharp surge in global crude oil prices. Brent crude is now at four-year high levels on worries that global supplies will drop due to Washington’s sanctions on Iran, said Motilal Oswal.
The US sanctions against Iran’s oil industry, which at its peak this year supplied nearly 3% of the world’s daily consumption, are due to go into effect on November 4.
On the domestic front, market participants will be keeping an eye on the RBI policy statement that due this week. Expectation is that the RBI
could consider raising rates, it added.
According to IFA Global currency report, higher crude prices would continue to weigh on domestic bonds and the rupee. Technically, the USD-INR pair broke the previous resistance zone of 72.95-73 levels and is currently hovering near 73.35 levels. The supporting technical factors continue to suggest further upside momentum. On the flip side, 72.80 likely to act as crucial support. Intraday and medium bias continues to remains bullish.
The next domestic trigger would be the tone of the RBI policy on Friday. Importers are advised to cover short term exposure at current levels (73.30). Exporters are advised to hold for covering long term orders as the pair has given upside breakout, it added.
Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers said, The rupee has made a new record low today on back of consistent rise in the crude oil prices. Sharp rise in the crude oil prices along with steep depreciation in the rupee might push inflation higher in coming months."
"Sharp volatility in the domestic equities and steep FIIs outflows from equity and debt segments keeping sentiments bearish for the rupee. The dollar index is hovering around multi-months high as the Federal Reserve continues to raise interest rates aggressively."
Focus would now shift to the RBI monetary policy meeting. There is a buzz of repo rate hike by 25 bps and possible change in the monetary policy stance by the RBI. More importantly, its guidance will be crucial. Market will also keenly watch whether the RBI announces any crucial measures to stabilize the rupee. In the near term, the rupee might trade in 72.50 and 73.80 range," he added.
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