Rupee vs Dollar: Why INR depreciating? Chief Economic Advisor has an explanation
Both the government and RBI have taken measures to check the outflow of dollars and encourage the inflow of foreign funds so that the depreciation of the domestic currency can be contained
Chief Economic Advisor (CEA) V Anantha Nageswaran on Wednesday said that the depreciation of the rupee against the US dollar has been lower than other major global currencies such as the Euro, the British pound, and the Japanese yen.
He attributed the depreciation in the rupee and other currencies against the US dollar to the aggressive monetary tightening by the US Federal Reserve.
As a result, the outflow of foreign capital is taking place from various emerging economies including India, putting pressure on their domestic currencies.
"Japanese yen, Euro, Swiss franc, British Pound have depreciated much more against the dollar (than the rupee)," he said on the sidelines of an event here.
Both the government and RBI have taken measures to check the outflow of dollars and encourage the inflow of foreign funds so that the depreciation of the domestic currency can be contained, he said.
Earlier this month, the Reserve Bank of India (RBI) announced new liberalized rules to attract foreign inflows. Besides, the government has also raised import duty on gold imports.
The RBI raised the overseas borrowing limits for companies and liberalized norms for foreign investments in government bonds as it announced a slew of measures to boost foreign exchange inflows.
It has also increased interest rates in recent months, thus increasing the attractiveness of holding Indian rupees for residents and non-residents.
The rupee for the first time touched a low level of 80 against the US dollar in intra-day spot trading at the interbank foreign exchange market on Monday.
The domestic currency has depreciated about 7.5 percent against the greenback in 2022 so far
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:43 PM IST