The Euro-Dollar is likely to trade within the range of 1.1950-1.2350 levels waiting for a trigger needed for a breakout on either side.

The strain on the deficit front followed a significant sell-off in Indian sovereign bonds as the debt levels increased than expected.

There is a lot of buzz in the market about the rupee moving stronger breaking 72.50 levels. Let’s understand the crisp causes that can cause strength in the pair or lead it to weakness hear-on.

Forex reserves help to warrant the domestic financial situation against these sudden changes affecting the economy.

The US 10 year treasury yields shot up to 10 months high at 1.19 percent due to expectations of further borrowing by the US treasury.

As it’s a wrap for 2020 where the rupee remained one of the most affected and worst-performing regional currencies, let’s sees what’s on the cards for the dollar-rupee pair in 2021!

It is quite likely that the dollar falls near to 88.50-88.70 levels could boost Euro and above 1.2450-1.2550 levels and 1.3550 levels respectively.

RBI has been piling up reserves at a fast pace since the COVID lock-down and easy monetary policy by most central banks resulting in a steep surge in capital flows into emerging markets including India.

Let’s understand the possibility of the dollar weakening further on an immediate basis or rebound and remaining within its 92.00-94.50 range.