Foreign Capital Outflows Amid Fed Tightening Putting Pressure On INR And Other Emerging Market Currencies: CEA

Chief Economic Advisor (CEA) V Anantha Nageswaran said that the depreciation of the rupee against the US dollar has been lower than other major global currencies such as the Euro, the British pound and the Japanese yen. He attributed depreciation in rupee and other currencies against the US dollar to the aggressive monetary tightening by the US Federal Reserve. As a result, outflow of foreign capital is taking place from various emerging economies including India, putting pressure on their domestic currencies. "Japanese yen, Euro, Swiss franc, British Pound have depreciated much more against dollar (than the rupee)," he said on the sidelines of an event here. Both the government and RBI have taken measures to check the outflow of dollars and encourage inflow of foreign funds so that the depreciation of the domestic currency can be contained, he said.

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