MoneyControl Currencies Analysis
Frequently Asked Questions:
1. Which currency will be stronger in 2023?
2. How do you predict currency trends?
3. Which currency is doing the best right now?
4. Can Indian currency get stronger?
Latest Rupee Dollar Exchange Rate:
1 USD = 85.71 INR December 31, 2024, 6.36 am
Trend Projected by Chanakya Research Team, for 31 December 2024
The Indian rupee slipped to its weakest closing level on record on Monday, pressured by a decline in the offshore Chinese yuan and broad-based dollar bids amid a prevailing bearish bias on the local currency.
Target 1 85.76
Target 2 83.82
Stop loss 83.61
Rupee Dollar Exchange Rate Discussion:
The Indian rupee fell to its weakest closing level on record on Monday, driven by a decline in the offshore Chinese yuan and broad-based dollar demand, amid a prevailing bearish sentiment towards the local currency.
The rupee ended at 85.5350 against the U.S. dollar, slightly lower than its previous session’s close of 85.5325.
Although the rupee briefly peaked at 85.44 during the session, it lost momentum in the latter half of the day, as widespread dollar bids from banks and a decline in regional currencies weighed on it, traders said.
Most Asian currencies weakened on the day, while the dollar index gained 0.1%, reaching 108.1. The offshore Chinese yuan depreciated by 0.2% to 7.31, pressured by rising U.S. bond yields.
Anil Bhansali, head of treasury at Finrex Treasury Advisors, noted that the dollar-rupee pair is likely to remain in the range of 85.30-85.60, with any dips expected to attract buying interest.
The rupee’s near-term volatility also surged on Monday, with the 1-month implied volatility reaching a more-than-16-month high of 3.7%.
FPI Flow details from Shrikant Chouhan,
Head Equity Research, Kotak Securities:
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Which currency will be stronger in 2023? moneycontrol
The United Nations officially recognises 180 currencies worldwide as legal tender. However, popularity and wide usage do not necessarily equate to the value or strength commanded by a currency. The concept of currency strength revolves around the purchasing power of a nation’s currency when exchanged for goods, services, or other currencies.
Currency strength is determined by evaluating the number of goods and services which can be purchased with one unit of the national currency and the amount of foreign currency obtained in exchange. A comprehensive analysis of various local and international factors is necessary to ascertain whether a currency holds the title of the most valuable or expensive in the world. These factors include supply and demand dynamics in the foreign exchange markets, inflation rates, domestic economic growth, the policies implemented by the relevant central bank, and the country’s overall economic stability.
10.United States Dollar (USD)
The currency of the United States of America is USD, or the US Dollar. It is the most widely traded currency globally and holds the position as the primary reserve currency. Despite its popularity, it ranks 10th among the world’s strongest currencies.
Also Read: 1 USD to INR: From 1947 to 2023
9: Euro (EUR)
The Euro (EUR) is the official currency of the Eurozone, comprising 19 member states of the European Union. It is the second-largest reserve currency and the second-most traded currency worldwide. The euro stands as one of the strongest currencies, holding the 9th position.
Also Read: Top 10 largest economies in the world in 2023
8: Swiss Franc (CHF)
The Swiss Franc (CHF) serves as the currency of Switzerland and Liechtenstein. Known for the stability of its economy, Switzerland is among the world’s wealthiest countries.
7: Cayman Islands Dollar (KYD)
The official currency of the Cayman Islands is the Cayman Islands Dollar (KYD). Although it ranks 7th among the strongest currencies, its value is the 5th highest globally. Initially using the Jamaican Dollar, the Cayman Islands adopted their own currency in 1972.
Also Read: Top 10 richest countries in the world by GDP per capita in 2023
6: Gibraltar Pound (GIP)
The Gibraltar Pound (GIP) is the currency of Gibraltar, pegged at par value to the British pound sterling (GBP). As a British overseas territory, Gibraltar depends on sectors like tourism and e-gaming. The GIP holds the 6th position among the strongest currencies.
5: British Pound (GBP)
Great Britain uses the British Pound (GBP), which is also pretty broadly used in other countries and territories. As the world’s 5th strongest currency, it holds a significant place in global finance. London’s status as a financial hub and Britain’s extensive trade activities contribute to the strength of the pound.
Also Read: World’s most powerful passport rankings 2023
4: Jordanian Dinar (JOD)
The Jordanian Dinar (JOD) has served as the currency of Jordan since it replaced the Palestinian pound in 1950. Jordan’s fixed exchange rates and diversified economy have contributed to the high value of its currency, ranking it as the 4th strongest globally.
3: Omani Rial (OMR)
The Omani Rial (OMR) is the currency of Oman and was introduced after the country ceased using the Indian Rupee as its official currency. As a country with significant oil reserves, Oman’s economy heavily relies on the oil sector. The Omani Rial, which is tied to the US dollar, is the third most valuable currency in the world.
2: Bahraini Dinar (BHD)
The Bahraini Dinar (BHD) serves as the currency of Bahrain, an island nation in the Arabian Gulf heavily reliant on oil exports. The BHD is pegged to the US Dollar and is exclusively used in Bahrain. With a strong expat community, including a significant number of Indians, the BHD holds the position as the second strongest currency globally.
Also Read: Top 10 powerful countries in the world in 2023
1: Kuwaiti Dinar (KWD)
The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world’s most valuable currency. Kuwait’s economic stability, driven by its oil reserves and tax-free system, contributes to the high demand for its currency. Among Indian expats, the INR to KWD exchange rate is particularly popular.
How do you predict currency trends? moneycontrol
3 Common Ways to Forecast Currency Exchange Rates
Purchasing Power Parity.
Relative Economic Strength.
Econometric Models of Forecasting Exchange Rates.
Which currency is doing the best right now?
The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world’s most valuable currency.
Can Indian currency get stronger? moneycontrol
6 reasons why many analysts expect Indian rupee could head towards 75/USD
Higher the reserves, the more stable the currency. Conclusion: Other factors like unemployment, equity market strength, volatility in crude oil prices, and money supply affect exchange rates. Nonetheless, the INR has several factors aligned in its favor, and as a result, many analysts forecast the INR to strengthen by 2025.
