Perspective on INR hitting 80/$ level By Mr. Nish Bhatt, Millwood Kane International
Perspective on INR hitting 80/$ level By Mr. Nish Bhatt, Founder & CEO, Millwood Kane International
“The rupee has been depreciating against the USD for a whole host of factors. Concerns around an economic slowdown in the US, Fed hiking rates, geopolitical tension between Russia-Ukraine, and a spike in oil prices have pushed INR to an all-time low. The US Fed hiking rates aggressively led to the dollar strengthening, and subsequently, FPIs pulled out funds from the Indian equity markets. FPIs have pulled out a record Rs 2.25 lakh crores from the Indian market in 2022 (YTD).
The INR depreciation is on expected lines, though it has depreciated nearly 25% since 2014 the fall has been moderate if compared to other Asian currencies. A dollar strengthening leads to a weakening of other currencies as witnessed in 2020 and 2013. In fact, some of the major currencies like GBP, Euro, and Yen have depreciated more than the INR.”
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