Rupee quote by Ms.Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking Ltd

Ahmedabad

After a brief retracement wherein it inched higher towards 75.05 mark, the Indian rupee has again steered towards depreciating path, in line with its overarching trend. The strength in US dollar and weakness in domestic equities along with concerns about widening of the fiscal deficit, due to the recent stimulus package paved the way for decline in the domestic currency. Market participants are also concerned about the rising covid-19 cases in India and its impact on the economy. Rise in gold and crude prices further acted as headwind for the rupee. Going ahead, the trend remains skewed to the downside as risk sentiment will further worsen in case it closes beyond the 76 mark, which will then drive it lower towards 76.50 levels.