Evening Currency Updates - Dec 15, 2021 - Kotak Securities

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

USDINR spot closed at a 20 month high at 76.23 on spot, up 37 paise for the day. Fear of a very hawkish US Fed prompted this move-in USDINR. It is not just the Rupee, even the Nifty closed in the red. The US Fed is expected to double the pace of taper tonight and also signal 2/3 hikes over the course of 2022. If the Fed does deliver a hawkish policy, it can accelerate the uptrend in USDINR. However, a dovish tilt can cause a sharp reversal. Therefore volatility will be high post-Fed.

Source : Equity Bulls

Keywords

CurrencyUpdate Rupee INR KotakSecurities