The rupee started witnessing a steep depreciation at the start of February and has fallen by 15% in just four months. The blame is being laid on global conditions and the appreciation in the US dollar. The question being asked now is if this is the 'new normal' for dollar-rupee equation. Can we revert to the 45-47 range?
A sharp appreciation of the rupee seems unlikely at the moment, for which the weakening domestic fundamentals are to blame. The government went in for consumption-oriented fiscal strategies after the Lehman crisis, but no attention was paid to enhancing the long-term growth of the economy.
Over all Rupee unlikely to appreciate in near future and will trade in the range of 54-56/USD, reports technical analyst.
Leave a Reply