The rupee breached the 76/$ level despite heavy dollar selling by state-run banks on behalf of the Reserve Bank of India. The currency weakened 1.15 per cent against the dollar this week, its worst weekly loss in 11 months. Dealers estimated the central bank’s intervention on Friday to the tune of $1-1.5 billion.
India’s exporters have already started to see a decline in the number of export orders from Europe due to the ongoing conflict between Russia and Ukraine. The apparel and engineering sectors have already witnessed the trend in the past one week, according to the Confederation of Indian Industry (CII).
The Russia-Ukraine crisis has pushed up prices for almost all global commodities, but edible oils, wheat and grains, fertilisers, crude oil, and metals have been hit particularly hard. In India, retail and wholesale food inflation has been rising, with the most recent data available showing that WPI food was 10.33 per cent as of January 2022.
Complete News Source : Business Standard
