Comment on Rupee from Anindya Banerjee - Kotak Securities

PFB Comment on Rupee from Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:

"FPIs continue to sell their holdings of domestic debt and equity. MTD total outflow are to the tune of nearly 9000 crore, but it is significantly lower than what it was during March, when total outflow was to the tune of 1.18 lakh crore rupees. As a result of the outflows and speculative pressure on Rupee, evident from the premium in the NDF market, USDINR continues to inch higher. However, the pace of depreciation in Rupee has weakened due to lower rate of outflows and increased intervention from RBI. Over the next few weeks, the key data to watch will the infection curve of COVID19, followed by any signs of whether second wave is emerging in China or not. If the curve continues to flattens across the globe, then it will help Rupee recover lost ground. Otherwise, Rupee can continue to inch towards 77.50 levels."



Vinod Nair, Head of research at Geojit Financial Services, "Markets gave up gains, following a negative opening in the European Markets and uncertainty regarding the spread of Covid-19 infections. Markets are also uncertain as to the government response after the official 21 day lockdown expires on April 14. Some states are looking to extend the lockdown and some are for withdrawing it in a phased manner. The longer the lockdown stays, more the impact on the economy and companies."

Source : Equity Bulls

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