Rupee To Trade Between 75.2-76/US Dollar Amid Ongoing Russia-Ukraine Crisis

Rupee in trade on Monday (February 28, 2022) has depreciated further to 75.637, down 0.75% against the US dollar. The currency will remain under pressure on a host of factors including continued FII outflows, the upcoming GDP data etc.

Rupee To Trade Between 75.2-76/US Dollar Amid Ongoing Russia-Ukraine Crisis

On Sunday after the Russian President put nuclear armed forces on high alert, there has been seen a demand for safe haven currencies including the US dollar, leading it to gain by 0.79%.

Motilal Oswal's forex and bullion analyst Gaurang Somaiya is of the view that "On Friday, rupee consolidated in a narrow range but during the weekend escalation between Russia and Ukraine could keep the currency weighed down against the US dollar. Yesterday, President Putin put Russia's nuclear deterrent on high alert in the face of a barrage of Western reprisals for his war on Ukraine. The 27-nation European Union on Sunday decided for the first time in its history to supply weapons to a country at war. The Russian rouble plunged nearly 20% to a new record low versus the dollar in early Asian trade after Western nations on Saturday unveiled harsh sanctions including blocking some banks from the SWIFT international payments system."

"The EU shut all Russian planes out of its airspace, as did Canada, forcing Russian airline Aeroflot to cancel all flights to European destinations until further notice. In the strongest economic sanctions yet, the United States and Europe said on Saturday they would banish big Russian banks from the main global payments system SWIFT and announced other measures to limit Moscow's use of a $630 billion war chest. Today, volatility would continue to remain elevated and escalation between the two nations is likely to keep the rupee weighed down. We expect the USDINR(Spot) to trade sideways with a positive bias and quote in the range of 75.20 and 76.00."

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