We're not likely to see the rupee hit 90 against the dollar in the next 6-8 months, though you can never say never in the markets.
According to me, all this indicates that it's adjusting to the global trend.
There's a slight shift in RBI's stance. They're letting the rupee find its level somewhat, which is smart if the dollar's strength is more global than domestic.
They've pulled a lot of liquidity out with forex interventions, around ₹4 lakh crore over the last few months.
They've started to push some back in with a CRR cut, but I'd argue they need to do more. We're talking about tools like buy-sell swaps, more CRR reductions, or even buying bonds in the open market to get more liquidity flowing.
The economic growth is slowing, and if the INR's depreciation is more about the dollar's global strength than our own weaknesses, then cutting rates could help without stoking inflation too much.
I'm not overly worried about Inflation.
Core inflation's been stable, WPI's down, and even with oil prices, we're not seeing much pass-through to local prices yet.
By - Broad-Research5220
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