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 travelers and students traveling 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.
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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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The first trading week after the Budget saw rupee caught between two opposite pulls. After closing the
previous week strongly at 68.40-42 on the back of FM’s statement of the government planning to
borrow in foreign currency to ease the pressure on domestic money markets and as India’s sovereign
foreign currency borrowings currently are at low levels, rupee fell steadily through the week as the
markets reacted to the surcharge of tax for higher income group, under which most of the FPI’s fell, by
selling by FPI’s in the equity markets, which put pressure on the rupee. Rupee traded in a 68.2975-
68.8475 band last week with the close at 68.68/69.
The market’s euphoria over the prospect of large dollar inflows on account of government borrowing
was quickly eased after the statement from the finance secretary that any such borrowing would take
time and the first borrowing may only be done after September as it would take about 3 months for
preparatory work. The large dollar inflows would therefore come only after September and till then
rupee is likely to depend on corporate foreign currency borrowing for major support.
On the other hand, the outflows on account of FPI selling in equity would have an immediate impact and
will put pressure on rupee. With global crude prices on the rise and Brent closing above $66 last week,
we could see further pressure on rupee this week if crude sustains last week’s gains and rises further.
Dollar demand from oil companies and importers hedging their near term dollar payable at current
levels would remain a pressure point on rupee this week.
Sandwiched between these two major factors, rupee is likely to trade in a 68.40-68.95 band this week
with a small negative bias as domestic economic indicators have not been very supportive and the
global geopolitical scenario could erupt any time on the Hormuz Straits tensions.