Any Sharp Rupee Depreciation Not Only Hurts Importers But Also Exporters: Sodhani

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Any Sharp Rupee Depreciation Not Only Hurts Importers But Also Exporters: Sodhani
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The Indian rupee tumbled to a fresh all-time low of 78.733/$1 on Tuesday and was trading at 78.72 level against the US dollar at the time of writing.

Rising crude oil prices, along with weakness in domestic equities and relentless offloading of Indian shares by foreign investors have been weighing on the domestic currency amid the ongoing inflationary fears impacting the emerging markets.

The US dollar has shot up almost 6% against the INR so far in 2022 and market experts view more pain ahead for the domestic currency.

Read Also: INR Falls to Record Low - Factors Driving the Currency Slide & Expert’s View

In a note sent to Investing.com, Kunal Sodhani, AVP, Global Trading Center, Treasury, Shinhan Bank India said, “USDINR is already trading at all-time high levels. Considering the dollar shortage may persist for some more time, there is space till 79.00 levels, only a close below 78.10 can once again bring the USDINR pair in a consolidation phase.”

Upon RBI’s (expected) intervention in rescuing the depreciating rupee, Sodhani believes, “RBI has never been considering any levels in mind. They have always thought of curtailing excess volatility and any kind of sudden sharp depreciation. They will continue to do so with decent FX reserves in hand. Any sharp depreciation of the rupee not only hurts importers but also hurts exporters.”

Read Also: Does RBI Have Enough Ammunition to Rescue Rupee from its FreeFall? Key INR Levels

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  • Indranil Ghosh @Indranil Ghosh
    This GOVT. is Eating Public money. Nobody is Bother about INR???
    Like 2
    • Positive Critic @Positive Critic
      Which government? How much of your money was eaten away?
      Like 1
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      100
  • sudhir joshi @sudhir joshi
    each & every happening is against economy but index is going up
    Like 2

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