New Delhi
Indian rupee may further depreciate to 82 to a dollar in the near term due to widening of trade deficit and expected aggressive rate hike by the US Fed later this week to tame record high inflation, economists said.
There is widespread speculation that the US Fed in its July 26-27 meeting may increase the interest rate by 50-75 basis points, which could result in flight of capital from emerging nations like India. With dollar outflow and elevated level of crude oil prices, the rupee would see further depreciation. Last week, the rupee depreciated to a life-time low of 80.06 a dollar.
Economists are of the opinion that the rupee after touching a life-time low may settle around 78 to a dollar by March next year with stability around crude oil prices and likely improvement in geopolitical situation.
Overall what we had assessed is that the rupee could settle somewhere around 79 to a dollar. That will be the average price for the entire year in the current depreciating cycle, the rupee may fall to over 81/USD in the current political situation, India Ratings & Research principal economist Sunil Kumar Sinha told.
