There is a need to disentangle the various demand and supply components. Let us consider some of the elements at play

The rupee weakened by 30 paise to hit a 13-month low of 66.10 against the US dollar. The benchmark 10-year bond yield was up 17 basis points at 7.80 per cent.

The government has ramped up printing of currency notes and is operating all the four presses 24x7, an official said today amid ATMs running dry in many parts of the country.

Concrete action is required to augment the supply of bank notes across the country and not mere statements from the Reserve Bank of India and the Finance Ministry assuring the public about adequate supply, said the All India Bank Employees’ Association (AIBEA).

Dealers attributed the rupee’s persistent fall to increased demand for the US currency from importers and foreign fund outflows.

Jamal Mecklai Speaks On Tracking Forex Trends

In case the government buckles under US pressure, the likely result could be a faster appreciation of the rupee

The U.S. Treasury’s semi-annual foreign exchange policy report is typically watched for statements on the Chinese currency. This year’s report, however, is more notable for the addition of the Indian currency to the‘watch list’ of nations that may be intervening excessively in their foreign exchange markets and distorting trade flows.

You may have been thinking that you have heard this line before. Well, we do not want to keep it secret from you but we have just revised an old line in our article.

Talking to ET Now, Upasna Bhardwaj, Kotak Mahindra Bank, says with global conditions being adverse and our own balance of payment gradually turning to the negative side, we are expecting a depreciation in the rupee.