Government and RBI may require coordination to stop rupee fluctuation

Currency

The central bank and the government have been at loggerheads over the latter’s demands, which included easing of lending and capital rules for some banks. But the rupee is likely to find it difficult to regain lost ground without the central bank’s support. “Despite the current relief for the INR, India remains vulnerable to domestic and external woes. Its weak external fundamentals leave it prone to another round of sell-offs. “The thawing of tensions between the RBI and the Government is another positive for now, though recent tensions will continue to lurk in the background and are not positive for the currency. Improved sentiment over the rupee was also reflected in a separate Reuters poll which showed bets against the currency declined in the past two weeks to their lowest since April.

  • The Indian rupee depreciated this week by ₹0.77 compared with the previous week close.
  • Last week Indian rupee closed at ₹69.72 with the aggregate gain of ₹0.22.
  • This week on Friday closed at ₹70.49 with the loss of 0.07 paisa.
  • Highest gain ₹0.05 on 10th Jan 2019 and highest fall ₹0.52 on 08th Jan 2019

 

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