India’s INR/USD exchange rate continues to depreciate, closing at 78.94 in June 2022
The depreciation of the Indian rupee lingered for a sixth straight month as the USD strengthened further. While the month of June reached a lifetime high of 78.94, by July 7, 2022, the INR/USD had reached 79.19, as foreign portfolio outflows and a large current account deficit exerted pressure on the domestic currency.
The former has been triggered mostly due to uncertainty at a global level in the wake of both the pandemic and the Russia Ukraine crisis, fuelled by monetary tightening in the US. The latter is on account of the greater value of crude oil and coal imports. Foreign exchange reserves, which had picked up in May, reduced in June to USD 593bn, by about USD 8bn.
Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2022 report.