Friday, March 24, 2023

Market volatility puts pressure on rupee, down to 82.61/$ – Usky News

Mumbai: The rupee is likely to come under further pressure due to risk-off sentiment in world markets due to the Credit Suisse crisis. On Wednesday, the domestic currency closed at 82.61 at the interbank forex market, but eased to 82.79 in postmarket transactions.
Bankers say the Credit Suisse crisis is unlikely to have any direct impact on the Indian banking system as problems in the banking group have been brewing for some time now. Bankers also said that Credit Suisse’s problems were not linked to the Silicon Valley bank crisis and that many felt the bank would be bailed out by authorities in Europe.
Government sources also said that the crisis at Credit Suisse would have no impact on India as the problems with the bank were largely confined to its home market in Europe and it had little wholesale presence in India.
“Uncertainty in the market will continue till March 22 when US Fed Will hold a meeting to decide on interest rates. Best case scenario for India would be irrigated Decision to stop due to economic downturn. Soft crude prices and a Fed pause will encourage the RBI’s monetary policy committee to pause as well,” the DBS Bank chief said. Treasure Ashish Vaidya.
However, dealers say market volatility in Europe and the US will spill over into Indian equities, putting further pressure on the rupee. “Outflows from foreign institutional investors are likely if there is risk-off sentiment, which will put pressure on the exchange rate. Yields on US Treasuries are fluctuating wildly, which is not good for financial markets.” joint advisor Managing Partner KN Dey.
IFA Global said in a research note, “Rupee traded with a weak trend throughout the session due to increased demand for the American currency from importers and overseas banks.” ,


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