The rupee may need further depreciation to address trade shocks. Its real effective exchange rate has fallen to a 2013 taper tantrum level. Economists suggest a potential 10% weakening of the REER within a year. Global trends and domestic rates might be misaligned, causing currency pressure. The Reserve Bank of India has sold significant dollars to support the rupee.
Market Samachar is a news aggregator. This article was originally published by Markets-Economic Times. Tap the button above to read the full story on their site.