Despite US Fed’s hawkish stance, rupee still could strengthen over the medium term
Pandemic control, economic recovery and earnings boost could attract more foreign capital inflows
June 18, 2021 / 01:35 PM IST
The rupee has fallen to a six-week low breaching 74 to a dollar. On Thursday, it was among the worst performers in emerging market currencies.
That’s not surprising. The US Federal Reserve has taken a hawkish turn. Its so-called dot plot now indicates two rate hikes in 2023, earlier than projected as consumer inflation pinched.
As a result, the dollar index, which measures the US greenback against a basket of currencies, jumped about 1.5 percent in the past two days. As...