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The rupee lost its gains for 2023 on May 19, 2023, falling to 82.80 intraday before settling at 82.67, as an acute dollar shortage developed. The shortage was linked to US debt ceiling uncertainty and expectations of further Federal Reserve rate increases.
The RBI reportedly stepped in to stem the decline.
Dollar scarcity in India raises the cost of dollar-denominated feed and fertilizer imports, which can squeeze importers' margins and purchasing. The effect on global commodity prices is limited because the episode was brief.
m.economictimes.comBhaskar DuttaMay 20, 2023Not enough comparable past events yet for a historical read.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
