Rupee, worst emerging Asia currency of 2022, likely to fall further

RBI may mop up any inflows to boost its foreign-exchange reserves, a move that may also work against the rupee

The Indian rupee, emerging Asia’s worst performer in 2022, is likely to extend losses in the next fiscal year, according to a top private bank in the country.

“A substantially wider current account deficit” in the next fiscal year will keep the rupee under pressure, Neeraj Gambhir, group executive for treasury, markets and wholesale banking at Axis Bank Ltd., said in a Bloomberg TV interview. 

“We haven’t seen a meaningful reversal of capital outflows that we saw for the best part of (fiscal) 2023.”

The rupee declined over 10% last year, weighed by a dollar bolstered by the Federal Reserve’s