InvestorQ : Why did the rupee fall so sharply on Tuesday 05th July?
Angel dcosta made post

Why did the rupee fall so sharply on Tuesday 05th July?

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Juvina Maggie answered.
1 month ago
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The rupee was on a free fall on Tuesday tanking by 41 paise to close at a new low of Rs79.36/$. The situation was only worsened by an inordinately strong dollar. While FPI flows were still negative at $35 billion since October, 2021; the real worry was the CAD. Trade deficit for June at $25.63 billion, raised fears of a spik in current account deficit. With weak forward premia in the dollar forward market the tone was set for a sharp fall in the rupee.

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