Rupee market update | The rupee has slipped about 5% this year and hit a fresh intra-day low of ₹90.30 on Wednesday, pressured by foreign investor outflows and steady dollar demand from domestic banks. Analysts say the absence of progress on an India-US trade package and weakness in equities have added to the pressure.
Long game for indian businesses | “₹@90. The proximate reason: foreign selling of Indian stocks both FPI & PE under FDI. Indian investors buying. Time will tell who is smarter. For now foreigners seem smarter. 1 year nifty $ return is 0. But this a long game. Time for Indian business to shake out of comfort zone,” says Uday Kotak.
Weak rupee is fine — stability matters | “A weaker rupee is fine as long as the slide is stable. RBI’s job isn’t to peg the currency, but to reduce volatility, that’s the right approach,” says Sanjiv Bajaj.
Not losing sleep over rupee | “Not losing sleep over weakening rupee, expect the INR to come back next year. Weakening of rupee not impacting inflation & exports,” says India's Chief Economic Advisor (CEA) V Anantha Nageswaran.
Rupee fall benefits exporters | “Rupee fall is beneficial for us as 50% of our rev comes from intl biz, entire benefits of ₹ fall won’t reflect on financials as some of that will go into hedging,” says Bajaj Auto's Rakesh Sharma.