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