USD vs INR: Indian Rupee at 9-month low against US dollar - Expert decode the impact

Weakness in the Indian Rupee continued even on Monday as the INR traded at a 9-month low against the US Dollar (USD). The rupee remained under pressure following the weakness in the domestic indices, Motilal Oswal said in its report. The downward trend was triggered by the Reserve Bank of India Monetary Policy announcement, it further said.
 
What this means for currency traders and also how weakening rupee would impact the overall situation for commodities? Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities gives useful insights. Take a look!   

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Gupta said that the rupee is trading at its 9-month low in comparison to the USD. This will have an impact on the imports like Gold, Silver and Crude oil.  

USDINR April Futures  

The USDINR April Futures on NSE today ended at 75.20, going up by almost 0.5 per cent. It hit an intraday high of 75.44. The VP recommends a Buy on USDINR April Futures at 74.90. He puts the stop loss at 74.40 while the target price between 75.50 and 76.  

The weakening INR will have a negative impact on the exchange rate leading to a costlier gold and oil, Gupta said. While the oil prices have been stable because of lower global demand for crude oil, a higher exchange rate will mean that the import bills remain stretched. That may ultimately impact the price of petrol and diesel, he further said.  

As for Gold and Silver, Gold was trading around USD 1744 at the time of filing this story. Gold prices eased on Monday as US Treasury yields remained elevated, denting the appeal of bullion. A stronger dollar could neutralise the impact of any price correction for bullion as the higher exchange rate could make Gold and Silver expensive.  

How other currencies traded today:  

EURINR (April) – EURINR ended at 89.32 on Monday, up by 0.5 per cent from the previous closing price of 88.86. It attained a high of 89.56 on the intraday basis.  
   
GBPINR (April) – GBPINR ended at 103.36 on Monday, up by 0.80 per cent from the previous closing price of 102.51. It attained a high of 103.42 on the intraday basis.  
 
JPYINR (April) – JPYINR ended at 68.85 on Monday, up by 0.9 per cent from the previous closing price of 68.19. It attained a high of 69.14 on the intraday basis.