Opposition and social media both trolled the Finance Minister for her remarks on the rupee’s fall.
In fact, it is the US Dollar that has strengthened, not the Indian Rupee, according to the Finance Minister last week.
As compared to other emerging market currencies, the Indian Rupee has performed much better,” Sitharaman told reporters last Friday.
Sitharaman’s remarks about the dollar’s strengthening were accurate, according to data. US Dollars are on a roll in 2022.
In spite of the aggressive interest rate hike, the Dollar Index (DXY) is still trading at 112.89, its 20-year high. As a result, the Indian Rupee has depreciated against the US Dollar, according to Megh Mody, a Commodities and Currencies Research Analyst at Prabhudas Lilladher Pvt Ltd quoted by ET.
As a result of the high inflation, the US Federal Reserve immediately became hawkish. Due to an increase in demand, the US economy has grown and the US Dollar has gained prominence over other currencies like the Indian rupee and the pound.
There has been no increase in the US dollar since 2000. Since the start of this year, it has gained 22% against the yen, 13% against the Euro, and 6% against emerging market currencies.
There is still time for the dollar bull run, according to the experts. Fears of a global recession and the ongoing Russia-Ukraine conflict will continue to drive the dollar up.
