By Malvika Gurung Investing.com -- The sank to a record low against the US dollar on Friday, exceeding the 82-mark for the first time ever amid weak
By Malvika Gurung
Investing.com — The sank to a record low against the US dollar on Friday, exceeding the 82-mark for the first time ever amid weak global cues that intensified concerns of the US Fed turning to aggressive monetary tightening, leading to recession.
At the time of writing, the domestic currency traded at 82.257 against the greenback.
While prices traded marginally lower in the session, it has recorded strong weekly gains and is up 7-10% this week following OPEC+’s announcement of the biggest supply cut since 2020.
Further, global markets fell ahead of the report, scheduled to release on Friday. INR has fallen almost 10.6% YTD.
In a note provided to Investing.com, Kunal Sodhani, Vice President, Global Trading Center, Shinhan Bank says,
“Bets for more aggressive Fed rate hikes and elevated U.S. bond yields continue to boost the USD. Fed’s Evans says the policy rate could head to 4.5%-4.75%. Euro fell after ECB minutes as it showed overwhelming inflation worries.
The pair has bounced sharply from around 7.02 levels to near 7.11 levels which will put pressure on the rupee. prices continued to hold higher levels after the announcement of a 2 million BPD of output cut.
Eyes remain on the US NFP data due today. There was arbitrage seen between onshore and offshore in 3-month tenor after 3:30 pm apart from large ECB payments pushing the USDINR pair higher.
For USD/INR, 81.75 acts as support while 82.50 a resistance.”
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