Rupee falls to 82; economic survey sees currency to remain under pressure
1 min read . Updated: 31 Jan 2023, 02:50 PM IST
PremiumThe Indian rupee may remain under depreciation pressure on account of plateauing of exports and subsequent widening of the current account deficit, the Economic Survey said.
The Indian rupee depreciated 52 paise to 82.04 against the US dollar in intra-day trade on Tuesday after the Economic Survey 2022-23 said that it may remain under pressure.
At the interbank foreign exchange, the domestic unit opened weak at 81.61 against the dollar.
On Monday, the rupee settled at 81.52 against the US Dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.15 per cent to 102.42.
Brent crude futures, the global oil benchmark, declined 0.67 per cent to USD 84.33 per barrel.
The Indian rupee may remain under depreciation pressure on account of plateauing of exports and subsequent widening of the current account deficit, the Economic Survey said.
According to data by RBI, the current account deficit (CAD) widened to 4.4 per cent of the GDP in the quarter ended September from 2.2 per cent in April-June due to a higher trade gap.
India's economy to grow 6.5% in 2023-24, compared to 7% this fiscal and 8.7% in 2021-22. Gross domestic product (GDP) in nominal terms to be 11% in next fiscal, according to the Economic Survey.
According to the survey, while commodity prices have retreated from record highs, they are still above the "pre-conflict" (Russia-Ukraine war) levels.
Strong domestic demand amid high commodity prices will raise India's total import bill and contribute to unfavourable developments in the current account balance, it said.
"These may be exacerbated by plateauing export growth on account of slackening global demand. Should the current account deficit widen further, the currency may come under depreciation pressure," said the key document released a day before the presentation of Union Budget 2023-24.
The BSE Sensex was trading 64.51 points or 0.11 per cent lower at 59,435.90. The broader NSE Nifty declined 19.05 points or 0.11 per cent to 17,629.90.
(inputs from PTI)
