The Indian rupee

The Indian rupee weakened to the 83.5 per USD level, giving in to further selling and approaching the record low of 83.7 on April 16th, pressured by broad weakness in other Asian currencies amid limited intervention from the RBI. Despite BoJ intervention and mixed fixes by the PBoC, elevated levels of dollar buying in Japan and China pressured emerging market currencies across the Asian continent. Consequently, investors pared expectations on the RBI’s room for rupee support, as its usual defense against a strong dollar would drive Indian goods and services to be less attractive against Asian rivals in global markets. Still, a resilient Indian economy and hawkish expectations for the RBI prevented an even sharper downturn. In its latest meeting, the central bank noted that upside risks to inflation due to higher food prices warrant a prolonged period of terminal interest rates.

Source: https://tradingeconomics.com/india/currency