The Indian rupee traded at a six-month low against the US dollar on Wednesday after the Reserve Bank of India’s monetary policy statement. The US dollar has not changed overall, Motilal Oswal said in a report. What does this mean for foreign exchange traders, and how will the depreciation of the rupee affect the overall commodity situation? Expert Anuj Gupta, Vice President (VP) of Commodities and Currency Research at IIFL Securities, provides useful insights. Look!
Gupta said the rupee is at its lowest level in six months compared to the US dollar. This will affect imports of gold, silver and crude oil.
Watch the Zee Business Live TV stream below:
USDINR April Futures
USDINR April futures on the NSE closed today at 74.78, up nearly 0.3%. It hit an intraday high of 75.14. The VP recommends buying USDINR April futures at 74.50. It sets a stop loss at 73.90 and a target price at 75.50.
A weakening INR will have a negative impact on the exchange rate, leading to higher prices for gold and oil, Gupta said. While oil prices have been stable due to lower global demand for crude oil, a higher exchange rate will mean that import bills will remain stretched. According to him, this could ultimately affect the prices of gasoline and diesel fuel.
In terms of gold and silver, gold has reached $ 1,750 at the time of this writing. This is a testament to the strength of the bullion after it hit a low of $ 1,676. A stronger dollar could lead to further increases in bullion prices for domestic consumers.
How other currencies were traded today:
EURINR (April) – EURINR ended at 88.65 on Thursday, up 0.15% from the previous closing price of 88.51. On a daily basis, it hit a high of 89.02.
GBPINR (April) – GBPINR ended at 102.61 on Thursday, up 0.20% from its previous close at 102.82. On a daily basis, it hit a high of 102.87.
JPYINR (April) – JPYINR closed at 68.30 on Thursday, 0.73% above the previous close at 67.81. On a daily basis, it hit a high of 68.49.