Indian Rupee: Spike In Crude Oil To Weigh On INR

2 Mar 2022 , 09:02 AM

Sentiments look very weak for the Indian Rupee as risk appetite has been hit badly by the intensity of the Russia-Ukraine war and equities are in a full downswing. The US dollar index is firmly above 97 mark. Indian Rupee rose marginally amid supportive cues from local equities in last session. The INR closed at 75.35 per US dollar, up 2 paise on the day. However, the Rupee will likely slide in early moves today as WTI Crude oil has spiked near $110 per barrel mark and still there is no sign of any stability in equities. Economic cues are positive. The Indian economy grew 5.4% in the October-December quarter and is likely to grow at 8.9% in 2021-22, according to the latest estimates released by the governments statistical office. The second advance estimates peg GDP growth at 8.9% for FY22 compared to the first advance estimate of 9.2%. Private consumption, reflected in private final consumption expenditure, grew 7% in Q3FY22 compared to 10.2% in Q2FY21. Gross Goods and Services Tax (GST) revenue collections in February rose 17.6% year-on-year to Rs 1.33 lakh crore, data released by the Finance Ministry on Tuesday showed. This marks the fifth consecutive month of GST collections being more than Rs 1.30 lakh crore, coming on the back of anti-evasion measures and a pickup in economic activity.

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