INSUBCONTINENT EXCLUSIVE:
The rupee is down 4.85% against the dollar so far this yearThe rupee ended at 74.82 against the US dollar on Friday, finishing a second
straight week on a positive note
At the current level, the rupee is off 2.72 per cent from its all-time low of 76.91 against the greenback, registered in April this year
However, it is still down 4.85 per cent on a year-to-date basis
Analysts expect the rupee to continue trading in a narrow range for the time being, amid a cautious trend in Asian currencies over US-China
deal will arise keeping the USD-INR (pair) afloat
But we don't expect a sharp rally as traders are focusing on the coronavirus vaccine developments and are pretty convinced over getting
he said.The USD-INR pair is expected to continue sideways within a broader range of 74.50-75.50, added Mr Gupta
Reuters this week showed that investors have raised their long bets on the Chinese yuan and most other Asian currencies, as signs of a
recovery in the world's second-largest economy and news of progress in coronavirus vaccine trials whetted risk appetite.The poll results
showed bullish bets on the rupee climbed, along with the Philippine peso, with sentiment towards the two currencies having been improved
lately on the back of solid net inflows.Meanwhile, domestic equity benchmarks Sensex and Nifty have registered six weekly gains in a row,
continuing a broader recovery since hitting the lowest point of the year in late March.Foreign portfolio investors (FPIs) have net purchased
domestic equities so far this month, following a combined Rs 36,401 crore in the past two months."For the rupee, it is likely to remain
insulated from the bittering risk sentiment as the dollar continues decline and is at nearly two-year lows
Also, the pickup in the FII inflows in equity can additionally hold supportive for the pair," said Amit Pabari, managing director at forex
advisory firm CR Forex."Hence, further losses for rupee coming with deteriorating risk sentiments and decline in emerging market peers are
likely to be caped near 75.50 levels, thereby keeping a range of 74.50-75.50 intact for near term."
