Economy

Rupee likely to firm up to 64.5 level: India Ratings

Rupee likely to firm up to 64.5 level: India Ratings

The rupee is set to strengthen its gains towards 64.5 level against the dollar on the back of weakness in dollar, ratings agency India Ratings said on Monday.

The US dollar has been losing ground against most emerging market currencies following a spate of weak data from the US and on expectations of a delay in policy rates normalisation in US, the rating agency said.

India Ratings said it expects the rupee to see further gains on the release of the first tranche of G-sec limit under the FPI framework this week.

The guidelines on foreign portfolio investment (FPI) limits in government securities (G-secs) will help broaden participation across the yield curve, help investors plan allocations systematically and alleviate concerns over ‘hot money’ outflows in the event of global volatility resurgence, Ind-Ra said.

Ind-Ra predicted inflation and factory output data due this week could underscore its bullish view on bonds. The rupee on Monday ended marginally lower by one paise to 64.75 against the American currency on mild dollar demand from banks and importers.

 

 
[“source-businesstoday”]

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