Due to the muted demand for the domestic currency from importers in the upcoming week, traders predict that the rupee will remain constant versus the US dollar.They claimed that market participants will be watching the monetary policy meeting of the central bank on Monday.
The dollar fluctuated between 213-214 during the previous week. It ended at 214.65 on Friday after ending at 213.98 on Monday. During the week, the rupee lost 0.31% of its value against the dollar.A foreign exchange broker stated, “The market has stabilised during the past week, and the rupee will probably remain stable at the same levels in days to come.
“In addition to foreign inflows and outflows, the monetary policy choice will be crucial in determining the rupee’s future course. The trader continued, “Monday’s meeting is being watched by the market.In order to comply with an IMF requirement before the board meeting later this month to resume the loan programme, the government relaxed a prohibition on the import of luxury and non-essential products.
To deter imports, it did however announce the application of high levies on fully assembled automobiles, mobile phones, and electronic goods.According to merchants, the market will also assess how opening up to luxury imports will affect the rupee.
