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Published on 9/04/2020 6:56:50 PM | Source: Millwood Kane International

Views On Quote Rupee by Mr. Nish Bhatt, Millwood Kane International

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Below is the Views On Quote Rupee by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International

“The Indian rupee has been under pressure throughout the week, hitting record lows due to the uncertainty in trade created by Covid-19. INR hit a fresh record low of 76.54/$ earlier today. Despite the RBI flushing USD into the markets since 20th March 2020, the RBI has been unable to contain the slide. As per data available in the month of March, the central bank's foreign exchange reserves declined by over $17 bn. The saving grace is that the dollar reserves scaled to a life-time high of USD 487.23 billion in the week ending 6th March 2020.  The unpredictability on the Covid-19 influence means that the INR may come under more pressure in the coming weeks. Most Asian currencies have been falling due to uncertainty over the economic outlook, with near-zero exports due to the outbreak of coronavirus. However, with the Indian government announcing stimulus packages to provide relief to businesses, lifting of lockdown and  steady fall in new cases of the virus will provide further strength in the domestic market, but the lockdown has to ease globally before Indian exports can commence trade and that is highly dependent on other countries. Further introduction of USD in the market to support the INR can be expected but predicting the INR/USD cycle is difficult in these uncharted times.”

 

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