Currency rate is one of the most significant parameters by which a country’s relative level of economic health is determined. A country’s currency rate gives a peek into its economic stability and play a pivotal role in the country’s trade market. Currency rates are almost always under scrutiny, they are constantly watched and analyzed. The currency rate is extremely volatile and influenced by a number of factors.
The strengthening and weakening of currencies help us determine a nation’s economic scenario and the welfare of the people residing in it. Thus, forecasting these rates is important to assess the benefits and risks for the traders in the business environment. Moreover, with the recent increase in the number of international travellers and students travelling abroad it more important for us to be informed about these changing currency rates and how it impacts the Indian Rupee.
Here at BookmyForex, our updates include a daily and weekly roundup of all the major currencies including US Dollar, Euro, Australian Dollar, Malaysian Ringgit, etc and how the Indian Rupee is faring against these highly traded currencies.
This blog also highlights the essential data likely to affect these forex rates. We wish to keep all our customers informed on the developments through our expert forecast which talks about currency rates and market insights. Furthermore, our official website (www.bookmyforex.com) also displays live exchange rates and gives you an option to freeze them for up to 3 days.
After opening with a positive gap at 71.68 against the previous day close of 71.79 as sentiment remained positive on near-term inflows, rupee fell through the day touching a low of 71.86 in the afternoon before closing around 71.84.
It had touched a high of 71.58 in the opening hour as traders built up short dollar positions in line with NDF market selling of dollars before our markets opened. The lack of dollar supply after the opening hour and the reversal of gains in the equity markets put pressure on the rupee as dollar demand rose on some import covering.
The negative sentiments on the current economic fundamentals continue to put pressure on rupee and it is now fully dependent on corporate inflows to support it. There was however no sign of panic in the market even as rupee fell steadily as crude prices fell a shade and the dollar remained soft against major currencies.
A comment made by the SBI Chairman that the Essar case would be settled by the end of the month led to hopes in the market that there will be some large dollar inflows on account of this deal. Traders will therefore be reluctant to run large long dollar positions ahead of the month end though overseas developments could lead to a slide towards 72.25 again in the near future.
The continuing slowdown in the economy could lead to some fresh policy moves by the government which may change the current negative sentiments and lead to some recovery of rupee. This is especially likely as the govt would be under pressure to act following the developments in the current political scenario with the opposition likely to be more aggressive in their attack on the government on economic slowdown.
Therefore, a strategy of selling dollars at the higher levels around 72.10-25 is recommended if we see that level in the next few days.
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With ever-growing trade, business and travel it is important to keep track of the numerous currencies especially USD, Canadian Dollar, Euro and Pound which are exchanged every day in the foreign markets. Here at BookMyForex, we understand that it is difficult to keep track of the ever-changing currency rates and the reasons which impact the rates. Besides a daily expert forecast, we also give you a weekly forecast to help you update your knowledge about foreign currency exchange. Here is the weekly roundup of some major currencies:
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