Even as the Indian rupee has withstood a lot of pressure against the US dollar, Former Chief Economic Advisor (CEA) KV Subramanian tried to explain the current depreciation of rupee against the greenback on Twitter.
Today, the rupee appreciated 37 paise to 81.30 against the US dollar in early trade as the American currency retreated from its elevated levels. At the interbank foreign exchange, the domestic unit opened at 81.45 against the dollar, then touched 81.30, registering a gain of 37 paise over its previous close, the report said.
In his tweet, the former CEA included a chart that shows dollar appreciation vis-a-vis other currencies.
“A REEL on rupee depreciation. See chart below. where ALL currencies have depreciated more year-to-date against the USD than the rupee. While the rupee has depreciated 8% year-to-date, dollar index has appreciated 18.8% over the same period,” Subramanian tweeted.
Yesterday, the rupee plunged 58 paise to close at an all-time low of 81.67 against the dollar.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee appreciated against the greenback as the dollar took a breather.
According to experts, focus will now shift to RBI's meeting this week, with its decision due on Friday.
"Most Asian and emerging market peers have started mixed, but a positive start in the equity futures could aid sentiments. The dollar index was marginally weaker, while the euro, pound-sterling and the yen strengthened against the greenback in this Tuesday morning trade," Iyer said.