Is rupee-dollar pair headed towards 85? Check analysts projections
Amid recovery in the dollar index and acute sell-off in government bonds, Indian rupee plunged to a new low today.
After recovering from 2-week lows, the dollar index has shown resilience and is up for yet another day on December 3 with the dollar index (DXY) quoting at 106.472. The continuing strength has weighed on the domestic unit rupee which has hit a new low for the second straight session today at 84.79 per dollar.
So, given the uncertainty around FII flow into Indian markets and other factors, here's how analysts and brokerages estimate the currency to perform going ahead.
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Can INR-USD pair head towards 85: Dollar gains weigh
Dollar gains have been fuelled amid Trump's tariff's threat as well as the French crisis that increased sell-off in government bonds supporting safe-haven demand of the U.S. dollar.
Can INR-USD pair head towards 85: Rupees fall to new low driven by weak Q2 GDP and recovery in dollar index
Rupee fall's to new low amid weak Q2 GDP data in the domestic markets. Also, the demand for dollar amid France crisis as well as heavy sell-off in sovereign bonds.
Can INR-USD pair head towards 85: Rising government debt also a threat
A rise in the government debt is also an additional burden for the softening currency.
Can INR-USD pair head towards 85: Factors seen supporting rupee at lower level
Manoj Jain- Commodity expert-India Nivesh said a decline in the crude oil price as well as Israel-Hamas ceasefire deal could offer support to the currency.
Can INR-USD pair head towards 85: Jain believes rupee to breach 85 level this week
We expect a rupee to remain volatile this week amid volatility in the dollar index and volatility in the domestic equity markets and a pair could trade in the range of 84.2400-85.1500, added Jain.