The rupee has depreciated 6 per cent against the dollar this year, weighing it down on broader strength in the greenback and withdrawal of investors from domestic equity markets.
A government official said on Monday that India is trying to “remove volatility” in the Indian rupee, which has hit a record low against the dollar in recent weeks.
- Reuters
- Last Update:July 04, 2022, 5:28 pm, IST
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NEW DELHI: India is trying to “address volatility” in the Indian rupee, which has plunged to record levels against the dollar in recent weeks, a government official said on Monday, amid a widening trade deficit and foreign investors. amid concerns about selling the property. ,
The rupee has depreciated 6% against the dollar this year, weighing it down on broader strength in the greenback and withdrawal of investors from domestic stock markets.
Meanwhile, India’s trade gap touched a monthly record of $24.3 billion in May, hurt by higher commodity prices.
“When oil prices are so high, of course the CAD (current account deficit) will go up. last several years India Bridging the CAD with capital inflows. Capital flows have been adversely affected this year.
As of 1013 GMT, the partially convertible rupee was trading at 78.95/96 per dollar, hitting a new record low on Friday.
However, the official said India’s macroeconomic fundamentals remained strong and he was “quite confident” that India would come out “well” once the situation improves.
The official also said that the government will stick to the fiscal deficit target of 6.4% of GDP for the 2022/23 financial year beginning April 1.
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