The experts also said that even though Rupees had depreciated the dollar, it had been valued against other currencies.
Global risk reluctance has caused depreciation of rupees to the dollar; However, the decline can be tolerated.
Although Rupees touched a psychological sign of 80 per dollar, Rupee did appreciate most of the leading currencies such as Euro, GBP and Yen, said Aishvarya Dadheech, Dana Manager, Ambit Asset Management.
Dadheech said, the Forex Reserve remains at a healthy level and the latest steps by the Reserve Bank of India (RBI) will help overcome the deficiency of the dollar.
The basis of Indian rupees is still intact and new correction (due to the global risk of sentiment) is an excessive reaction.
We believe that INR (Indian Rupee) will remain bound and foreign investors will see this as an opportunity, and will be tempted to lock this level,” Dadheech added.
The main reason for the weakening of Indian rupees of the US dollar is a global factor that includes the Russian-Ukraine War, rising crude oil prices, tightening global liquidity and significant FII outflows,” Arun Kumar, Head of Research, Funds.
