Rupee still stronger in comparison to other currencies, says analyst Sunil Shah
Oct 20, 2022
New Delhi [India], October 20 : Market analyst Sunil Shah on Thursday said even though the rupee as a currency has weakened in comparison to the US dollar, but it is still "far stronger" than other currencies.
Shah added that the weakening of the rupee will be stable once the FDI (foreign direct investment) flow increases, which the analyst feels is likely from next month.
"Foreign capital will help in stabilising the rupee," Shah added
For the record, the Indian rupee has been weakening over the past few weeks to hit fresh new all-time lows as the US dollar strengthened against major global currencies.
On Wednesday, the rupee breached the 83 mark for the first time in its history.
So far this year, the rupee has depreciated around 11-12 per cent, market data showed.
The rising trade deficit, depleting forex reserves, and the latest monetary policy tightening by the US Federal Reserve also triggered the currency's depreciation. Investors tend to move towards stable markets, such as the US, for better and stable returns amid any tight monetary policy.
Last week, Union Finance Minister Nirmala Sitharaman too defended the rupee's depreciation saying the currency has performed much better than many other emerging market currencies as geo-political tensions continue to rise.
Speaking at a media briefing during her recent US visit, she explained that it was not the rupee weakening rather US dollar was strengthening.
