Well, you all should know that the rupee fell today at its lowest against the US dollar and it is at lowest of 67.50. The rupee fell very down today and the rupee had settled almost flat at 67.33 against the US currency. You all may know that the domestic stocks markets were also under pressure today. Some sources are saying that the traders would be keeping a close watch on the outcome of the Karnataka elections, due tomorrow.
Also, in a note forex advisory firm IFA Global said that market would closely watch the results of the Karnataka elections and as we told you above that it is going to affect the whole currency movement. “Post the Karnataka election result tomorrow, the rupee is likely to align with the domestic fundamentals and global US dollar performance,” it added.
You all should know that Anindya Banerjee of Kotak Securities said that all the traders will react to the Karnataka election results. Even though the reports are coming that the larger downtrend in the rupee to reverse, oil prices have to decline and that will going to affect the whole certain thing for sure. Mr. Banerjee predicted rupee to range between 66.70 and 67.70 on the spot market during this week.
Also, the reports are saying that the chief economist of India Ratings Devendra Pant said,”Rupee is responding to higher current account deficit in FY19 due to higher crude prices. If present level of crude price stays for more than a couple of months this will have an impact on current account deficit, which will have an impact on inflation, fiscal deficit and growth.” Annual wholesale data released today showed that price inflation accelerated in April, helped by higher fuel and food product prices.
