“How is Indian Rupee looking now against Dollar and might look in coming Months”?

The Indian currency(RUPEE) was trading at its All-time low against American Dollar on Wednesday,i.e. 79.05/$. But, It improved its position on Thursday and climbed up by 0.12. The Indian Rupee has taken a spill in the past few months because of the Price rise in crude oil prices globally which is caused by the geopolitical tension between Russia and Ukraine. Also, The global central banks have adopted some monetary policies to control high Inflation, and the foreign investors are continuously withdrawing their investments from the Indian market. In 2022, Foreign Portfolio Investors(FPIs) have pulled out More than Rs.1.81 Lakh crore until Mid-June.

Yesterday, FM N. Sitharaman shared his views on this subject “The Indian Market is relatively placed better. We are not a closed economy and are part of the globalised world. So, Our Economy will be impacted”.

Now, Let’s look at “How the Indian rupee might perform in the coming months?”. 

US Federal Reserve will have decided to meet in July to discuss Controlling Inflation. According to Industry Experts, The Central bank could hike Interest rates by another 50 or 75 Basis-Point. Now, This decision might make the Indian Rupee weaker against Dollar. But, Reserve Bank of India(RBI) will also have a meeting in August on this same subject. So, Let’s see how both of these meetings will go and What decisions will be taken by both country’s Central banks.