Rupee under pressure as stock markets selloff: Analyst

Indian benchmark indices felt the heat with major corrections seen of around 2.50 per cent in the last two days keeping rupee at lower levels, Jateen Trivedi, VP Research Analyst said

New Delhi: Rupee weakness continued further below 82.75 down by another 18 paisa as dollar index rising above $102.50 kept added pressure on rupee fall as risky assets showed sell off, says Jateen Trivedi, VP Research Analyst at LKP Securities.

Indian benchmark indices felt the heat with major corrections seen of around 2.50 per cent in the last two days keeping rupee at lower levels, he said. RBI intervention is expected near 83.00 with important data coming in two days of US jobless claims, PMI, unemployment and non-farm payroll which will act as key triggers for data specific approach from Fed desk.

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Rupee range can be seen at 82.60-82.95, he added. Shantanu Bhargava, Managing Director, Head of Discretionary Investment Services, Waterfield Advisors said a combination of the long-term structural factors and the near-term strengths seems to have inspired Morgan Stanleys decision to upgrade its views on India’s markets to overweight.

In the latest quarter, India grew by 6.1 per cent, exceeding market expectations by ~100 bps and continues to be the fastest-growing big economy in the world. The service sector, construction and agriculture saw a faster increase than predicted. Plus, India is experiencing an extended period of macroeconomic stability with a much better current account deficit, adequate reserves, and manageable inflation.