- 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.
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
The annual imports, which include purchases of crude oil, coal, fertilisers, and edible oils, will be supported by a wider increase in commodity bills.
The government increased the import duty on gold from 7.5 % to 12.5%. impact on the cost of gold
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.
Over $32 billion in foreign capital has left Indian equity markets in the past year, making India the worst performer in Asia behind Taiwan.
"The current account deficit has consistently increased." Economists from Goldman Sachs Group Inc. state that "India's external balances are weakening."