Rupee to slip on expensive crude oil, FII funds’ outflow

Rising global crude oil prices along with FIIs fund outflow from the equity market will further weaken the Indian rupee during the upcoming week.

Accordingly, the rupee is expected to trade with a weak bias upto 75 to a US dollar in the coming week.

“Rising crude and trade deficit has been keeping the currency under pressure and even FPI outflows have been a constant pressure on the rupee…,” said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.

“It may lose further ground owing to oncoming US Fed meeting and current equity outflows.”

Notably, a rate hike by the US Federal Reserve can potentially drive away more FII money from India and other emerging markets.