HomeLifestyleAnd the rupee will fall .. may touch the level of 84.50...

And the rupee will fall .. may touch the level of 84.50 by December – Bankers and economists said in the survey

Highlights

In a Reuters poll, 14 bankers and foreign currency experts have predicted a fall in the rupee.
Economist said – rupee will continue to fall due to no major change in the external environment.
On Thursday, the rupee fell to a record low of 83.2150.

Mumbai. From the government to the RBI is troubled by the ongoing fall in the rupee and it seems that this problem is not going to end soon. A poll conducted by Reuters agency Reuters has expressed the possibility that the Indian rupee will fall further against the dollar. The rupee saw the biggest fall in the last nine years due to the increase in domestic trade balance and interest rates in the US.

Today the rupee had fallen to a record low of 83.2150. In a Reuters poll, 14 bankers and foreign currency experts have estimated in the survey that by December, the rupee may fall to 84.50.

Also read- Rupee falls to the lowest level of 83.01, today there is a big fall of 61 paise

The decline will continue due to lack of improvement in the global environment
The South Asian currency has fallen about 12% so far this year, which is roughly the same as its fall in 2013. At the same time, in this survey, experts estimated that the rupee will remain between 83.25 and 86, on which there was a broad consensus. From this it seems that the movement of the rupee is not going to be good this year.

Madan Sabnavis, Chief Economist, Bank of Baroda said, “The rupee may fall to 85 levels by December, as we do not see any major change in the external environment. At the same time, the dollar continues to rise and our local fundamentals remain weak. We are expecting India’s current account deficit (CAD) to be at 3%-3.50%.

Indian markets were affected by the weakness of the rupee
Meanwhile, capital inflows have been affected by aggressive hike in interest rates by the US Federal Reserve to control inflation. The Fed’s hike has pushed the dollar index up nearly 18% this year and forced investors to pull money out of the emerging economy. According to NSDL data, foreign investors have pulled out $23.4 billion from the Indian equity market and $1.4 billion from debt so far this year.

Explain that the weakening of the rupee affects the foreign exchange reserves. Whenever the Reserve Bank of India feels that the rupee is going too low, it starts selling dollars, which reduces the forex reserve. At the same time, imports are expensive due to the weakening of the rupee. Its direct effect is on the common people here.

Tags: Dollar, RBI, Rupee weakness

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