Economy

‘Not anxious about rupee if other currencies depreciate’

‘Not anxious about rupee if other currencies depreciate’

Experts believe that a possible intervention by the Reserve Bank of India (RBI) could have stemmed the rupee's fall.

Attributing the fall in rupee value against the USA dollar to "external factors", Economic Affairs Secretary Subhash Chandra Garg said on Tuesday that there is nothing to worry about as long as the depreciation is in line with other currencies. It had ended at 68.84 to the dollar on Friday. Economic affairs secretary Subhash Chander Garg said the "rupee is depreciating due to external factors" and there is "nothing at this stage to worry".

The 10-year bond yield stood at 7.801%, from its previous close of 7.823%. However, according to an Economic Times report, Turkish lira, Russian ruble, Argentine peso have significantly weakened against the dollar. So this has made the rupee a relatively better-performing currency with the local unit now ranking the second best among the emerging market. lot.

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In the current financial year, which began on April 1, the rupee has depreciated around 6.7% against the US dollar. Core inflation eased to 6.1% from 6.4% a month ago.

The currency crisis in Turkey, which had a massive impact on Asian markets on Monday, began after President Recep Tayyip Erdogan asked citizens to exchange gold and dollars into the lira as the country's currency dropped almost 19% due to worsening relations with the United States.

On what could happen if the fell to 80 against the dollar, Garg said it will not be a concern, provided all other currencies depreciate in the same range. "However, July CPI coming in at 4.17 per cent will relieve some pressure on interest rates and the rupee in the near term", said Deepak Jasani, Head of Retail Research at HDFC Securities.