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.
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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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After losing ground over the previous two days following the attack on Saudi oilfields, rupee recovered sharply as crude prices dipped after Saudi announced restoration of more than 50% production impacted by the attack and stated that they will be back at their full capacity by the end of the month.
This was faster than expected and chances of any constraint on global crude supply fell immediately. Brent dropped below the $64-mark last night and this will support rupee in the medium term. Rupee had opened with a major positive gap at 71.49 against the previous day close of 71.78 and then as oil prices fell through the day, rupee touched the day’s high of 71.1650 before closing at 71.24.
It had touched the day’s low of 71.52 in the opening minutes. The Fed as expected cut rate by 0.25% but its forward guidance did not indicate any further cuts this year, though as usual, they did state it would be data-dependent. The impact on rupee due to the Fed decision is likely to be very minimal.
Yuan, on the other hand, remains under a bit of pressure, trading around 7.0950 level after PBOC fixed the mid-rate slightly weaker than yesterday. However, the rupee has not seen any pressure in the NDF markets though it was unable to sustain the break to 70.90/95 seen late last night.
As of now, there are no fresh leads as far as domestic markets are concerned as no economic data is set to be released today and yesterday’s FM’s announcements did not really relate to the forex or money markets.
As such we expect the rupee to remain in the broad 70.90-71.45 band in the next 48 hours with rupee expected to drop only if there is some escalation in the middle east tensions. Last night the Saudi’s provided evidence which they said clearly established Iran’s involvement in the drone and missile attack and Trump announced additional economic sanctions on Iran, the details of which are yet to be released.
However, there has been no hint of any military action so far but if that does happen, crude prices could again rise sharply which will pull rupee down fast. That apart rupee should remain steady for the time being and a move towards 70.80/85 remains on the card.