RUPEE UNDER PRESSURE, FEERS OF STEEPER RATE HIKE DURING 2022

The International Monetary Funding observed and assessed that elevated commodity prices and the war in Ukraine will widen India's current account deficit to more than three percent of GDP during the current financial year of 2022 compared to 1.2 percent during the previous year however country will resist on the basis of the growth prospects of the per capita income.It further suggested to boost the export as structural reforms could deepen integration in the global value chains and may attract the FDI .India's official intervention in the currency market should be limited.The recommendations in the external sector Reports that during 2022 indian rupee , along with several market currencies would be under pressure.The policy prescription would broadly depending upon the RBI official forex .In the Inter bank forex market ,the rupee fell to a low of 80 against a dollar  which feers steeper rate hike .