A Further Deteriorating Trend:
With the US Federal Reserve retaining a hawkish stance on interest rates, the rupee might breach 83 levels, according to analysts. On the trade front, the imports of crude oil and other commodities will continue to put pressure on the rupee.
Despite its slide, the rupee has been more resilient compared to its peers in other emerging markets due to RBI intervention. However, it has come at the cost of significant depletion in the foreign exchange reserves. In the week ended December 30, the forex reserves saw gained marginally by $44 million, data shows.
The increase was mainly due to increase in the gold reserves of $354 million, which was offset by decline of $302 million in the foreign currency assets. The RBI held 785.35 metric tonne of gold as of September 30.