InvestorQ : How do you see the Indian rupee in coming weeks?
Katherine Gonsalves made post

How do you see the Indian rupee in coming weeks?

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rhea Babu answered.
3 weeks ago
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On Thursday, the Indian rupee touched Rs80.06/$ in early trades but closed relatively strong at 79.85/$. This strength in the rupee was largely driven by weakness in crude prices, persistent FPI inflows and RBI intervention to defend the rupee. In the last 3 days, the rupee has consistently closed above 80/$ but is yet to give a decisive close above that level. However, the rupee is still likely to face a lot of fundamental headwinds with nearly $79 billion of unhedged dollar exposure. This will trigger sudden dollar demand and then push the Indian borrowers to scramble for dollars. That is likely to have nasty implications.

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