The Indian rupee lost value on Thursday against the world's reserve currency as speculation mounted that the currency's recent gains were overdone, according to Bloomberg.
Dropping from its top value since July of last year against the U.S. dollar, the rupee lost value amid confidence that the Reserve Bank of India will slash the pace of the currency's gains. Through the Wednesday trade session, the monetary unit of the subcontinent has climbed about 3.2 percent against the greenback.
According to a Reuters poll of economists and analysts, the aftereffects of political elections and the laggardly pace of growth will drag down the rupee's value as the year continues.
"Foreign inflows are likely to pick up further as we approach the elections and it is unlikely that they will withdraw until the outcome is known," head of foreign-exchange trading Ashtosh Raina with HDFC Bank Ltd. in Mumbai told the news source on Thursday. "The rupee's movement ahead largely depends on election outcome and only a government that has pro-growth policies will help it appreciate further."
The Indian monetary unit slipped roughly 0.5 percent against the greenback on Thursday.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
