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Updated December 24th, 2023 at 18:13 IST

With RBI active intervention, Rupee to trade in range of 81-85: Motilal Oswal

On the global front, the Fed is near its peak for the tightening cycle and dot plot suggest that the Fed could even cut rates thrice in 2024

Business Desk
Rupee
Rupee | Image:Unsplash
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Active intervention by the RBI could keep the volatility in check for the rupee and we expect it to trade in the range of 81.00 and 85.00, Motilal Oswal Financial Services said. 

“As far as the rupee goes for 2024, on the domestic front, momentum will be driven by centre elections and flows that will be attracted in the equity and debt segment,” Motilal said in its note.  According to the note, India has positioned itself in the JP Morgan bond index due to which India is  likely to attract flows to the tune of over $25billion.

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On the global front, the Fed is near its peak for the tightening cycle and dot plot suggest that the Fed could even cut rates thrice in 2024. “The Fed has been quite vocal in highlighting that the ‘Data-Dependent’ will be the approach going ahead. In 2024, the US is preparing for its Presidential elections that is scheduled at the end of the year and is going to be one of the key events that will set the tone for 2025,” the note stated. 

According to the note,  as far as the Dollar Index is concerned we expect the momentum to be marginally negative considering that the Fed will remain dovish in their outlook and that would be triggered by a softening economy

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Published December 24th, 2023 at 18:12 IST

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