News > More U.S. rate increases could add to the pressure on rupee

More U.S. rate increases could add to the pressure on rupee

The Hindu | 20/10/2022 07:37 PM | Click to read full article

Higher than-expected interest rate increases in the U.S. could put further downward pressure on the rupee and increase imported inflation in India, but there is limited risk to the country’s sovereign rating from external pressures.

“The RBI recently reiterated that it does not have a target level for the exchange rate, but we expect the authorities will continue to use reserves to manage exchange-rate volatility.

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