Why is inr depreciating

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ET India Inc. ET Engage. Higher energy prices put pressure on rupee as commodity prices are rising causing inflation. Expecting further dip in rupee against dollar, Anuj Gupta of IIFL Securities said, "We are expecting that it may depreciate further to test 76 to 77 levels very soon. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Never miss a story! Stay connected and informed with Mint. Download our App Now!! Data shows the Rupee has been one of the biggest losers over the last three weeks as concerns are growing over rising Covid cases and its impact on economic activity across the country.

The Rupee has been one of the weakest emerging market currencies over the last three weeks as has lost 4. In the same period, only the Turkish New Lira has lost more than the Rupee as it declined 4. While Brazilian Real has lost 3. Thai Baht and Indonesian Rupiah have lost 2. Rising Covid numbers — over 1. As several states are now considering more stringent lockdown measures, market participants are concerned over delay in the recovery of the economy, that was hit hard in by the pandemic.

Besides, the strengthening of dollar in line with expectations of better growth in the US economy, has also put pressure on the Rupee. Skip Navigation. Key Points. The rupee's resilience has primarily been because of two reasons: first, foreign fund flows into the Indian market and second, the Reserve Bank of India's management of the volatility, according to Gaurang Somaiya from Motilal Oswal.

British bank HSBC expects the rupee to hold up "relatively well" in a stronger dollar environment as persistent FDI inflows and better foreign-exchange reserves will help the currency withstand external headwinds. In this article. Indian currency notes of Rs 2,, Rs and Rs denominations. VIDEO BofA Securities is optimistic about the Indian rupee and India's economy.