# Rupee fall in 2018 was driven by risk aversion, says Kanungo - The Hindu

> RBI Deputy Governor B.P. Kanungo said the rupee's 2018 slide to near 75 per dollar was driven by capital-flow volatility and risk aversion, not a change in fundamentals. He cautioned that currency intervention is costly, can conflict with monetary policy, and has limits when the rupee depreciates. The speech was given at a FEDAI conference in Beijing.

- Date: 2019-04-25 · published 2019-04-25T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/59889-rupee-fall-in-2018-was-driven-by-risk-aversion-says-kanungo-the-hindu
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The RBI's stated limits on defending the rupee suggest currency volatility may persist, which keeps the cost of dollar-priced feed imports uncertain for Indian buyers.

## Read by commodity

- USDINR: neutral

## Sources

- thehindu.com: https://www.thehindu.com/business/rupee-fall-in-2018-was-driven-by-risk-aversion-says-kanungo/article26946408.ece

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