# Why the RBI’s forex umbrella is getting buffeted by dollar winds

> The RBI is struggling to defend the rupee as its forex reserves deplete and rupee liquidity tightens, while the dollar index has risen more than 16% this year. Offshore forwards point to the rupee falling to 81.70 per dollar within three months.

- Date: 2022-09-23 · published 2022-09-23T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/39855-why-the-rbi-s-forex-umbrella-is-getting-buffeted-by-dollar-winds
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weakening rupee and dollar strength raise Indian import costs for commodities and reduce purchasing power, a mild bearish signal for demand.

## Read by commodity

- DXY: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-11-14 | [Why the Dollar Keeps Getting Stronger](https://feedsoft.ai/events/11852-why-the-dollar-keeps-getting-stronger.md) | -0.1% | -0.0% |
| DXY | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -0.6% | +1.6% |
| DXY | 2023-06-01 | [Why is the US dollar so strong again?](https://feedsoft.ai/events/35846-why-is-the-us-dollar-so-strong-again.md) | -0.9% | -1.2% |
| DXY | 2022-12-27 | [USD to AUD Forecast: Why The US Dollar Is Strengthening Against The Australian Dollar](https://feedsoft.ai/events/38485-usd-to-aud-forecast-why-the-us-dollar-is-strengthening-against-the-australian.md) | +0.1% | -2.5% |
| DXY | 2019-04-22 | [The dollar is too strong for U.S. companies](https://feedsoft.ai/events/59765-the-dollar-is-too-strong-for-u-s-companies.md) | +0.7% | +1.5% |

## Sources

- moneycontrol.com: https://www.moneycontrol.com/news/business/markets/why-the-rbis-forex-umbrella-is-getting-buffeted-by-dollar-winds-9219961.html

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