The co-founder of the online brokerage and trading platform Zerodha Nikhil Kamath has said that the Indian Rupee is not bad afterall, as it is located around the 82 mark. Kamath shared a graph to illustrate his point. The graph shows the relationship between the US Dollar and other currencies.
Kamath said that Rupee at 82 isn't bad for the US, and it's too bad for all else but dollar-dominated commodities If this trend continues, large companies might have to relocate out of the US to stay competitive. The price went below the 82 mark on Wednesday for the first time in intraday trade before falling to 81.93 against the dollar. Kamath is not the only one who says the rupee has fared better in comparison to USD and other currencies. Former Chief Economic Advisor KV Subramanian said that while there are multiple factors that lead to the appreciation of the US dollar, the Indian currency has not fared as badly as others. Subramanian said the US dollar has appreciated due to rising dollar yields, flight to safety and above all home bias.
He said in his Twitter thread: How do we see the pound's performance vis-a-vis other currencies? Rupee depreciation is less than all other currencies because of our stronger macro-fundamentals. Inflows for FPI have been significant since July with August inflow being the highest in 20 months. The former CEA stated that he does not believe that the US dollar will be easing anytime soon. He stated that asset markets will do well in the US, while the US economy is not doing well. There is a possibility that a bubble is building up in the US asset markets. When Russia-Ukraine war uncertainty subsides, I expect the extraordinary amounts of money flowing into the US to stop. I think dollar appreciation will stabilise when that happens. Till then, all other currencies will depreciate, with the rupee depreciating less than other currencies. The US dollar eased a bit as the American currency eased slightly, the pound appreciated by 35 paise to 81.58 against the US dollar in early trade. The rupee opened at 81.60 against the dollar, touching 81.58. The rupee touched 81.75 against the American currency. Senior Reseach Analyst at Reliance Securities Sriram Iyer told PTI: Investors now await the monetary policy committee's decision on Friday, with growing expectations of a 50 basis points hike due to the pressure on the rupee from hefty interest rate hikes in the US. 9 as the US dollar rallies to record highs.