# Indian rupee faces rout over acute shortage of dollar - The Economic Times

> 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.

- Date: 2023-05-20 · published 2023-05-20T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/36228-indian-rupee-faces-rout-over-acute-shortage-of-dollar-the-economic-times
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-03-01 | [Rupee opens 3 paise down at 70.77 against dollar - The Economic Times](https://feedsoft.ai/events/60392-rupee-opens-3-paise-down-at-70-77-against-dollar-the-economic-times.md) | +1.1% | +0.9% |
| DXY | 2022-08-29 | [Why rupee touched an all time low of 80.13 to the US dollar today - Times of India](https://feedsoft.ai/events/40318-why-rupee-touched-an-all-time-low-of-80-13-to-the-us-dollar-today-times-of-india.md) | +0.6% | +4.4% |
| DXY | 2018-06-28 | [Indian rupee hits record low against US dollar; RBI intervenes - The Business Times](https://feedsoft.ai/events/64797-indian-rupee-hits-record-low-against-us-dollar-rbi-intervenes-the-business-times.md) | -0.8% | -0.9% |
| DXY | 2022-05-11 | [‘Rupee fell on spillover effects of strong dollar’ - The Hindu](https://feedsoft.ai/events/41688-rupee-fell-on-spillover-effects-of-strong-dollar-the-hindu.md) | -0.7% | -2.0% |
| DXY | 2018-09-28 | [Risks of global dollar shortage are rising: McGeever - The Globe and Mail](https://feedsoft.ai/events/63246-risks-of-global-dollar-shortage-are-rising-mcgeever-the-globe-and-mail.md) | +0.6% | +1.3% |

## Sources

- m.economictimes.com: https://m.economictimes.com/markets/forex/indian-rupee-faces-rout-over-acute-shortage-of-dollar/articleshow/100370563.cms

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.