The Indian rupee hit an all-time low versus the US currency. The rupee was trading at 86.40 versus the US dollar when this article was submitted. According to experts, the rupee is expected to fall to 87 by the end of March.
According to implied volatility trends, there is an 80 percent chance that the currency would fall to 87 between now and March end, up from 27 percent a month ago.” says Akshay Chinchalkar, Head of Research at Axis Securities.
According to Akshay, higher treasury yields and a jump in crude prices have impacted the outlook for the Indian rupee. The rupee has fallen for 16 weeks in a row, which is unprecedented in its history.
The Indian rupee fell above 86 this morning as the global dollar advanced due to rising treasury yields and an increase in oil prices, further dampening the rupee’s outlook. Offshore markets continue to bet against the rupee through options, with dollar-rupee out-of-the-money calls being aggressively traded last week. “The rupee has now fallen for 16 consecutive weeks, which has never happened in its history,” he remarked.
Ajay Bagga Banking and market experts disagree, claiming that the rupee is under pressure along with other foreign currencies. In 2024, it has outperformed other emerging markets (EMs).
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