SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 26 Jul, 2022  

Rupee.9.Thmb.jpg Rupee depreciation

   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
Bikky Khosla | 26 Jul, 2022

The Indian rupee has begun this week's trading session by inching slightly higher to close below 80 against the US dollar. This, however, is hardly encouraging as the currency has lost a whopping 7% from the start of 2022, and according to a recent report, it may fall further to 82 per dollar in the near term. But the RBI is of the view that the movement of Rupee has remained 'relatively smooth and orderly'.

A weakening Rupee, is, no doubt a concern as it may result in higher prices of importing goods including crude oil, which in turn will increase the trade gap and short-term inflation as well as higher interest rates as a result of RBI's effort to bring down prices, but according to some economy watchers, the Rupee depreciation is likely to benefit the country’s export sector even amid the environment of weak global demand.

Meanwhile, according to reports, the RBI – which "can afford to spend even $100 billion more if required" – is ready to defend the currency from extreme volatility. The central bank has recently allowed trade settlements between India and other countries in Rupee. This is a positive move and in synchronization of which the Centre should clarify on benefits on such export transactions which were earlier available only on foreign currency export transactions.

Meanwhile, foreign investors have turned net buyers in July, with a net investment amount of nearly Rs 1,100 crore in Indian equities. This is encouraging, particularly in the background of a net withdrawal of Rs 50,145 crore in the previous month. It is also a relief that raw material prices have normalised now, our export competitor China’s Yuan has witnessed a similar depreciation along with Rupee, and more importantly the fundamentals of the Indian economy is still strong.

I invite your opinions.

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter