Quote on `the recent depreciation of INR against the USD` by Rajeev Sharan, Head - Criteria, Model Development & Research, Brickwork Ratings
Below the Quote on `the recent depreciation of INR against the USD` by Rajeev Sharan, Head - Criteria, Model Development & Research, Brickwork Ratings
The rupee’s fall below 90 against the dollar brings mixed consequences. While export sectors like IT and textiles gain competitiveness, higher import costs for crude and raw materials will squeeze margins and widen the trade deficit. Rising inflationary pressures could dampen consumer demand and corporate profitability, while firms with unhedged foreign borrowings may face financial stress. These pressures could weigh on credit profiles in vulnerable industries. Following initial volatility, we expect the rupee to settle below 90 as fundamentals rebalance and markets adjust to the new equilibrium.
Above views are of the author and not of the website kindly read disclaimer
Tag News
Comment on expectations from RBI monetary policy later this week by Ajay Garg, CEO & Directo...
More News
Perspective on IIP & CPI data by Ms. Rajani Sinha, Chief Economist, CareEdge
