The Indian rupee continues to be under pressure against the US dollar and would trade in the range Rs 78.75-80, said Kotak Mahindra Bank in a report.
According to the report, the Indian rupee continues to be weighed down by strengthening greenback continuously benefiting form the safe-haven demand and Fed's monetary tightening bias despite the weakening growth outlook.
Further the US 10-year yields regained the three per cent mark while commodities continued to slide lower. Providing some respite to the rupee was the fall in crude oil prices below US$100/bbl (from the week's high of US$114.8/bl) as fears of a potential global recession spurred concerns about oil demand.
Further, the rupee got some support as the Reserve Bank of India (RBI) stepped in with measures to alleviate the dollar tightness.
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The tug-of-war of diverging factors led to rupee trading in a narrow range of 78.87-79.38.
According to the Kotak Mahindra Bank, given the uncertain and adverse global environment and weak external fundamentals, rupee is expected to continue to trade with a weakening bias.
"We expect USD-INR to trade in the 78.75-80 range in the near term," the report said.
