Indian currency continues to depreciate. How exports may miss benefits of weak rupee
So far, in the calendar year, the rupee-dollar exchange rate in nominal terms has depreciated by more than 7% due to headwinds from tighter global financial conditions, risk-off sentiment, and a strengthening US dollar.
Indian rupee weakens against the US dollar on the back of strong demand for the greenback from oil companies and bearish sentiment in domestic equities. Markets are preparing for another huge rate hike from the US Federal Reserve next week, and that has investors trading with a cautious bias. Sensex erased its over 60,000 mark, while Nifty 50 slipped under 17,900.