As the Fed aggressively jacked up rates in 2022 to fight inflation, there was a massive influx of foreign capital into US treasuries
Highlights
- The rupee is facing a steady bout of depreciation against the dollar
- If it was the US Fed hiking rates initially that lent strength to the dollar, the US economy’s strength continues to support it
- India is not alone in this situation, with other EM currencies giving it company
- But the REER shows that the INR is holding up well against other currencies
- While the pressures on the rupee-dollar exchange rate will remain, the fluctuations will be tightly range-bound thanks to