With the US dollar gaining strength over the last several weeks, several currencies had weakened sharply. The rupee was no exception, although forex sales by the central bank, a host of measures to support the currency, and a period of relatively benign crude oil prices had contained the extent of its weakness. However, with crude oil rebounding to $105/barrel, the rupee slipped to a fresh intra-day low, and crossed the threshold of 80/$ on July 19, 2022.
In June 2022, India’s merchandise trade deficit widened to an all-time high $26 billion, and the WPI and CPI inflation printed at 15.2
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