FX
Confidence 0.70
Rupee closes at 95.21 vs USD, falls on-week as merchant, NDF-linked flows blunt dollar retreat
What happened
The Indian Rupee closed at 95.21 against the US dollar, experiencing a weekly decline as various flows impacted its performance.
Causal chain
Merchant and NDF-linked flows Decline in Rupee value
India impact
Negative
- − Weak Rupee could increase import costs for FMCG sector.
Sector impacts
Nifty FMCG −
Weak Rupee could increase import costs.
Short term (1–4 weeks)
Continued pressure on Rupee expected.
Long term (3–6 months)
Potential for further depreciation if flows do not stabilize.
Sources
- · Rupee closes at 95.21 vs USD, falls on-week as merchant, NDF-linked flows blunt dollar retreat