Is it rupee better place?

by- Rajendra

Cross

- Oct 20, 2022

Rupee Hit New Low 83.12

Image Credit- Unsplash

The rupee is facing additional threats as a result of India's widening trade deficit and capital outflows, which further worsen the country's inflation problems.

New record Low 83.12.

Future events are anticipated to propel the rupee's trend downward against the dollar.

Rupee has been weakening steadily against the Dollar through 2022.  Rupee has depreciated by 9.8 percent since January

Foreign exchange reserves declined by $7.9 billion to $553.11 billion in the week ended September 2

Reserve Lowest  in 23 Month

The annual imports, which include purchases of crude oil, coal, fertilisers, and edible oils, will be supported by a wider increase in commodity bills.

Expensive Imports 

The government increased the import duty on gold from 7.5 % to 12.5%. impact on the cost of gold

 Govt  Increase  Gold Tax

In Aug, India's trade deficit reached a record high of $27.98 billion 

In the future, the rupee spot could depreciate near 82.5/83 levels by the end of the year.

Rupee Target

Over $32 billion in foreign capital has left Indian equity markets in the past year, making India the worst performer in Asia behind Taiwan.

FII

"The current account deficit has consistently increased." Economists from Goldman Sachs Group Inc. state that "India's external balances are weakening."