USDINR Live Price: Dollar Index up after 75 bps rate hike; rupee hits record lows, may test 82, says expert

USDINR Futures Price: US Dollar Index has gained strength after the US Federal Reserve on Wednesday raised the interest rates by 75 bps to the range 3.00-3:25 per cent. The strength in Dollar Index has led to the weakness in othet major currencies including the Indian Rupee which hit its all time low on Thursday. At the interbank foreign exchange market at 12.30 p.m., rupee was trading at 80.71 against the dollar, which was sharply lower than its previous close, a PTI report said.

USDINR 28 September 2022 futures were trading at 80.6150, up by 0.61 paise or 0.76 per cent from the last closing of 80.0050 on Wednesday.

"Rupee on Life time low level. After the fed decision dollar index trading on above 111 levels and due to this reason rupee and other asian currencier are trading on a lower levels. Today as expected rupee is trading at life time levels 80.40 levels. Eur against dollar is also trading at 20 yrs levels at 0.9822 and GBP against dollar is also trading at 29 yrs low levels at 1.1234 levels," commodity and currency expert Anuj Gupta said.

"We are expecting due to the  hawkish statement of FED major currencies against dollar may depreciate. Now rupee may further depreciate and test 81 to 82 levels very soon," Gupta said.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities has recommended a buy strategy on 28 September USDINR Futures on NSE. Buy USDINR at 80 with as stop loss of 79.40 and price target of 80.80.

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS

"With the US Fed increasing rates by 75 bps and hinting at more rate hikes in the future, we believe the Dollar index can see a significant increase,  implying most major market currencies, including INR should be under pressure. If we start seeing INR depreciating, then from a USD returns perspective for FPIs, India becomes unattractive. We could also witness a reversal of FPI flows in the near to medium term, which will increase market volatility. Higher interest rates in the US will force major central banks, including India, to increase interest rates to stem the pressure on their domestic currencies and with increased interest rates and cost of capital, market multiples can contract. We believe in the near term, Indian equity markets can witness increased volatility.

Kunal Sodhani, Vice President, Global Trading Center, Shinhan Bank in a note said that considering the technical charts DXY can test 112.50, EURUSD can test 0.9720/50 levels, GBPUSD can test 1.1180 levels, USDJPY can test 145.20 levels, the PTI report said.

"For USDINR, 79.60 acts as a good base while a break of all-time high of 80.13 on a closing basis, can open doors for 80.50 levels as a lot of option sellers may trigger stop losses," the report said quoting Sodhani.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)