The Indian rupee is likely to depreciate slightly on Thursday amid risk aversion in equity markets, strength in US dollar and elevated crude prices. The USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 82.50 in next few sessions. In the previous session, rupee depreciated against the US dollar on disappointing trade data and foreign fund outflows. A negative bias on risk aversion in global markets weighed on the local unit. At the interbank foreign exchange market, rupee opened at 81.41 and settled at 81.25 against the American currency, registering a fall of 34 paise over its previous close.

Also Read: Asian stocks mixed, dollar finds footing as traders assess Fed outlook

“Rupee consolidated in a narrow range and volatility remained low ahead of retail sales number released from the US.The dollar was supported by stronger-than-expected U.S. retail sales data as investors also looked for clues from Federal Reserve speakers on the path.US retail sales posted the biggest increase in eight months in October, indicating demand for goods is broadly holding up despite decades-high inflation and a worsening economic outlook. Apart from the UK budget announcement, focus will also be on the final CPI number from the EZ and Philly Fed manufacturing index from the US.We expect the USDINR(Spot) to trade sideways and quote in the range of 80.50 and 81.50.”

Sriram Iyer, Senior Research Analyst at Reliance Securities

“The Indian Rupee weakened on Wednesday on dollar demand from importers and weakness in Asian currencies. The Rupee depreciated by 0.25% to end at 81.2975 per dollar. A decline in USD/INR forward premiums also made it attractive for importers to hedge, leading to more dollar outflows. The 6-month dollar was down 25 bps this week, according to Refinitiv. Some support came in the form of falling dollar and easing geopolitical tensions in Europe.”

Also Read: Share Market LIVE: Nifty, Sensex stare at muted start on F&O expiry; US stocks fall, Asian markets mixed

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas

“Indian Rupee depreciated by 0.43% on risk aversion in global markets weak Asian currencies. Disappointing macroeconomic data from FII outflows also weighed on Rupee. We expect Rupee to trade with a negative bias on risk aversion in global markets and Dollar demand from importers. However, weak dollar and a decline in crude oil prices may prevent a sharp fall in rupee. Geopolitical tensions eased somewhat after investigations revealed that the missile which hit Poland was fired from Ukraine and not Russia. Investors may also remain cautious ahead of retail sales and industrial production data from US. USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 82.50.”