Indian Rupee Touches Rs 80 Mark Against Dollar

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Indian Rupee Touches Rs 80 Mark Against Dollar
16 Jul 2022
6 min read

News Synopsis

After several days of hitting new lows, the Indian Rupee has reached a new record low of 80 against the US Dollar. Experts predicted a drop to 80 by October this year, but we are only halfway through July. 

Several factors have contributed to the rapid decline in the value of the rupee, but analysts believe the Reserve Bank of India (RBI) has done a good job of keeping volatility low - that is, sudden fluctuations in the value have been relatively low.

“Indian Rupee has been a slight outperformer when compared against a basket of 26 top currencies, year-to-date. INR has depreciated 7.5% whereas median losses have been around 8.5%,” Anindya Banerjee, VP, currency & interest rate derivatives at Kotak Securities.

This essentially means that a decline in the value of the rupee was almost inevitable, and experts believe it will continue until the recession concerns have passed. “As long as the USD continues to strengthen due to US Fed and global economic slowdown fears, Rupee will follow that trend,” Banerjee stated.

According to a Bank of America Securities report, India's CAD could worsen to $105 billion in 2022-23, up from $86 billion the previous year.

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