The rupee may see itself touching 80 over the next one year

22 Jun 2022 CW Team

India’s rupee has witnessed around 5 per cent depreciation year to date (YTD) in 2022 and 6.5 per cent year on year (YOY) with the performance somewhere in the middle of the emerging market group. This is in the context of dollar strengthening by ~10 per cent YTD. The pressure on the rupee has been building largely from October 2021, primarily driven by two aspects:
a) Rising crude (and commodity) prices driving a higher current account deficit
b) Tightening of rates by the US Federal Reserve leading to a risk-off scenario impacting India’s capital account flows.
Both these factors have been accentuated by the Russia-Ukraine war since February 2022. The war has only increased the supply-side shocks, driving higher inflation across the world, prompting aggressive central bank actions.

What’s India’s position in this context?
To understand this, let us begin with the background that being a country of net current account deficit, India is dependent on capital flows to balance the deficit. India has built its reserves from the excess of capital flows, unlike many emerging markets, which build reserves from surpluses in the current scenario. In the current scenario, there seems to be pressure on both fronts, which has led to outflows to the extent of $ 28 billion in 2022 YTD and cumulative outflows of ~$ 34 billion since October 2021. Alongside, India’s reserves have declined from a peak of $ 642 billion in October to $ 596 billion, a fall of $ 46 billion.

Both outflows and decline in reserves have some comparable situations in the past two decades…

For the full version, CLICK HERE…

Infrastructure Transport

16 Sep 2025

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..