Rate hike fears, sell off: 5 reasons why the rupee hit 68 levels today

 

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Rupee crossed the 68 mark against the US dollar in trade on Friday, as comments by the US Federal reserve chair, Janet Yellen, raised concerns regarding a possible hike in interest rates in December policy review.

Analysts at ICICI Securities expect the rupee to hit 68.1 levels going ahead. In a note, they recommended buying USD/INR November Futures contract on the National Stock Exchange (NSE) in the range of 67.55 – 67.65 for a target of 67.9 – 68.1 with a stop loss placed at 67.45.

Related Story: Fed Rate Hike Worries Weigh On Markets; Rupee Hits 68/$

Here are five reasons that pushed the rupee to 68 levels:

  • Possible rate hike by the US Federal Reserve
  • Strong US economic data:
  • Sell-off by foreign investors
  • Fund Outflows
  • US bond yields

 

Read More….

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