INR opens at 68.55 as against yesterday’s close of 68.50. Today, depending on the budget announcements, rupee may trade in a wide range. We expected to be 68.30 to 68.80.
In yesterday’s economic survey, I personally liked the idea of investment linked push to export. In the global scenario, supply chains are getting rebalanced as companies look to shift their production away from China. This is one of the most opportune time for India to put it self in the new supply chains and attract production base to India.
If Govt focus would be on exports, RBI may support the cause and not let INR overvalue.
From US, yesterday market was closed and hence not much update. Today there is NFP to be released. It will be keenly watched an impact Dollar.
Suggest to hedge very near term imports around 68.50 and wait for hedging long term exports.