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.

From the last 10 to 15 trading sessions, we have seen RBI supporting the rupee at 73.00 to 73.20 levels, but we are not sure that with rising inflation, how long they can keep buying.

Euro crossed its 2-year high and had the sharpest decline of nearly 1.7 percent since April, both in the same month.

Let’s understand the same through the factors which can be influential in driving the near term course for the pair.

With the busy and eventful week amid a couple of Data important releases from the Euro-Zone, BoE, and US FOMC meeting, let’s analyze what’s there in the treasure for the cross currencies in the coming days.

The nature of rupee suggests, the longer the pair trades range-bound, the sharper and stronger is the breakout.

RBI has accumulated nearly $62.63 billion of Forex reserves so far since March 2020. The central bank not just bought dollars but also played a great role in controlling the volatility in the pair.

The dollar is trying to be resilient and showcased some strength following Friday’s better-than-expected employment report.

August has been a resolutely weak month for the rupee and the pair has depreciated 10 times in 11 years.