The Indian rupee on October 7, hit a fresh record low of 82.22 against the US dollar. The domestic currency was down 33 paise or 0.41 percent against the USD.
The Indian rupee has depreciated around 10.6 percent so far during this calendar year. This took place amid a flight to safety towards the American currency amid macroeconomic worries and Fed's rate hikes.
On October 6, Chicago Fed President Charles Evans said that the Fed's policy rate is likely to head to 4.5 percent-4.75 percent by the spring of 2023 as the Fed increases borrowing costs to bring down too-high inflation.
According to media reports, Minneapolis Fed President Neel Kashkari highlighted that there is no Fed pivot coming until financial conditions worsen significantly from here.
U.S. non-farm payrolls for September are yet to be released on October 7, with economists forecasting a headline print of 250,000 new jobs, compared with 315,000 in August.
The dollar index which tracks the greenback versus a basket of six major peers was trading above the 112-mark after rallying for two days.
PMS fund manager Saurabh Mukherjee recently said a 2013-like rupee meltdown is highly unlikely largely because of India’s improved energy efficiency.
He said, “Whilst India’s Current Account Deficit (CAD) touching 3 percent of GDP is raising blood pressure levels amongst some investors, this figure would have been at least twice as high had India not become a more efficient use of energy over the past decade.”
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