Online brokerage and trading app Zerodha’s co-founder Nikhil Kamath has said rupee at 82 isn’t a bad thing. He also tweeted an infographic to compare rupee against other currencies like US dollar, Yen, Pound Sterling and Euro.
“Rupee at 82 isn’t such a bad thing….US is too far anyway, for all else but dollar-denominated commodities…If this trend continues, large companies might have to relocate out of the US to remain competitive”, Kamath tweeted.
On Wednesday, the rupee had plunged below the 82 mark for the first time in intra day trade before it settled 40 paise down at 81.93 against the US dollar, PTI had reported.
On Thursday, the rupee appreciated 35 paise to 81.58 against the US dollar in early trade as the American currency retreated from its elevated levels.
All eyes are now set on the Reserve Bank of India’s monetary policy committee decision on Friday. Since the last meet, the retail inflation has come above seven per cent again. The expectations of a 50-basis point hike have increased due to the pressure on Indian rupee from the large US Federal rate hikes.
On September 21, the Federal Reserved had raised its key interest rates by three quarters of a point for the third straight time. The move boosted its benchmark short-term rate to a range of 3 per cent to 3.25 per cent, the highest level since 2008, AP reported.
The Fed officials had also forecast that they will further raise the benchmark rate to roughly 4.4 per cent by year’s end, a full percentage higher than what they predicted in June. They are expecting to raise the rate further next year to about 4.6 per cent.