๐พ๐ฏ๐ #๐ฐ๐ต๐ซ๐ฐ๐จ๐ต #๐น๐ผ๐ท๐ฌ๐ฌ (โน) ๐ฐ๐บ ๐ญ๐จ๐ณ๐ณ๐ฐ๐ต๐ฎ ๐จ๐ฎ๐จ๐ฐ๐ต๐บ๐ป #๐ผ๐บ #๐ซ๐ถ๐ณ๐ณ๐จ๐น ($)?
In this #Thread ๐งตwe will answer this question.
Like โค๏ธand Retweet ๐for Wider Reach and if you find the thread informative and useful.
In this #Thread ๐งตwe will answer this question.
Like โค๏ธand Retweet ๐for Wider Reach and if you find the thread informative and useful.
Our Indian Rupee has hit an all-time low against US Dollar plummeting to โน77.42 per US $.
The fall of Rupee can be associated with two major reasons-
๐ด US Fed Interest Rate Hike.
๐ด Foreign Investors Dumping Indian Stocks.
The fall of Rupee can be associated with two major reasons-
๐ด US Fed Interest Rate Hike.
๐ด Foreign Investors Dumping Indian Stocks.
๐ด US Fed Interest Rate Hike:
It was the biggest hike in two decades when US Fed raised interest rates by half percentage to fight #inflation.
Moreover, it is likely that more rate hikes will occur in the coming months.
As a result, the 10-year US yield has risen to 3.17%.
It was the biggest hike in two decades when US Fed raised interest rates by half percentage to fight #inflation.
Moreover, it is likely that more rate hikes will occur in the coming months.
As a result, the 10-year US yield has risen to 3.17%.
๐ด Foreign Investors Dumping Indian Stocks:
And when interest rate rise, foreign investors prefer to protect their capital by investing their money back into the US risk-free bonds than in riskier economies like India.
And when interest rate rise, foreign investors prefer to protect their capital by investing their money back into the US risk-free bonds than in riskier economies like India.
Foreign Institutional Investors (FII) have been dumping money from Indian market at a ferocious pace, with net sales of โน 1.3 Lakh Crores so far in 2022.
And since the sentiments are weak and the world has a lot of trust in the US $, hence US $ comes out as the perfect hedge.
And since the sentiments are weak and the world has a lot of trust in the US $, hence US $ comes out as the perfect hedge.
What are the implications?
As a country, India import a lot of stuff. Expensive stuff like Oil. If the Rupee falls in value, we will have to shell out more money to buy the same stuff. This Higher cost is eventually passed on to consumers like us.
As a country, India import a lot of stuff. Expensive stuff like Oil. If the Rupee falls in value, we will have to shell out more money to buy the same stuff. This Higher cost is eventually passed on to consumers like us.
According to #RBI report, every 5% fall in the Indian Rupee increases inflation by 0.15%.
That's it for today.
If you have read it till here, then do Like and Retweet the first tweet.
Also, follow @chartians for more such informative threads.
That's it for today.
If you have read it till here, then do Like and Retweet the first tweet.
Also, follow @chartians for more such informative threads.
https://twitter.com/chartians/status/1525115292225269760
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