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ICICI Direct: Monthly Forex And Commodities Outlook - Rupee To Appreciate Further Versus Dollar, Gold To Rise Towards Rs 56000  

ICICI Direct: Monthly Forex And Commodities Outlook - Rupee To Appreciate Further Versus Dollar, Gold To Rise Towards Rs 56000

An employee uses a machine to count U.S. one-hundred dollar banknotes at the Hang Seng Bank Ltd. headquarters in Hong Kong, China. (Photographer: Paul Yeung/Bloomberg)  
An employee uses a machine to count U.S. one-hundred dollar banknotes at the Hang Seng Bank Ltd. headquarters in Hong Kong, China. (Photographer: Paul Yeung/Bloomberg)  

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ICICI Direct Report

We expect the rupee to appreciate further as consistent Foreign institutional investors (FII) inflows in domestic equities along with continued weakening of the dollar due to near zero interest rates for the longer term will keep further pressure on the pair.

U.S. dollar Indian rupee futures have an immediate hurdle at 74.50 level. As long as it sustains below this level, we will see this appreciation trend continuing in the near term towards the next major support around 72.30 level.

We believe gold prices will benefit as a perceived hedge against inflation and currency debasement triggered by the money printing by global central banks to ease the economic blow from the pandemic.

Hence, we expect gold prices to bounce from current levels towards immediate target placed around Rs 56000.

Click on the attachment to read the full report:

ICICI Direct Commodities Outlook.pdf

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