Rupee’s movement in the near-term will be governed by stimulus packages and data from the US rather than the Indian unit’s fundamentals, ICICI Bank said in a note today.
“We continue to expect near to medium term rupee movements to be largely dictated by overall dollar cues, rather than its own fundamentals,” the bank said. The bank expects the Indian unit to move in the 48.00-49.00 a dollar band with a weakening bias this week.
“Once risk aversion begins to stabilise, we can expect the dollar rally to fade out and emerging market currencies will begin to fare well,” the note said.