Parul
The rupee continues to strengthen against the global benchmark dollar as the US dollar index weakened substantially last week. The weakening of the dollar is a positive for other currencies.
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The rupee opened at 80.52 against the US dollar versus the previous close of 81.80 on Friday. For the record, barring the latest appreciation in November, the Indian rupee had been weakening over the past several weeks to hit fresh new all-time lows.
In October, the rupee breached the 83 mark for the first time in its history. So far this year, the rupee has depreciated around 8-9 per cent.
India’s retail inflation data for October is scheduled to be released later today. India’s retail inflation surged to 7.41 per cent in September, remaining above the mandated range of 2-6 per cent for the third consecutive quarter.
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Under the flexible inflation targeting framework introduced in 2016, the RBI is deemed to have failed in managing price rises if the CPI-based inflation is outside the 2-6 per cent range for three quarters in a row.
Against this backdrop, an out-of-turn meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India was held on November 3 to discuss and draft the report to be sent to the central government for having failed to maintain the inflation mandate.
