Below is quote on Rupee 01 February 2022 By Ms. Sugandha Sachdeva, Vice President - Commodity and Currency Research , Religare Broking Ltd
With a strong capex thrust of around 35 percent and focus on green energy transition, Budget 2022 is certainly growth and future-focused, which will provide a fillip to new-age businesses. As a strong backdrop, FY22 growth is estimated to be 9.2%, while the GST collections have been the highest on record at 1.41 lakh crore in January 2022. All of this augurs well for attracting inflows into the country. Though it’s a slightly relaxed fiscal deficit target pegged at 6.4% of the GDP, the government is moving towards its proposed glide path of 4.5% fiscal deficit target by FY26. Besides, the announcement of RBI backed digital rupee based on block chain technology to be introduced and imposition of tax on crypto assets at 30 percent, shall further boost inflows in the economy and aid better money management. As we gear up for higher growth with several forward-looking levers playing out, we reckon the Indian rupee to strengthen in the near term with key support seen at the 75.50 mark.
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